Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
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Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 120,000,000 | 120,000,000 |
Common stock, shares issued | 48,971,017 | 48,547,417 |
Common stock, shares outstanding | 48,971,017 | 48,024,685 |
Treasury stock, shares | 522,732 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Consolidated Statements of Operations | ||||
Net sales | $ 97,822 | $ 157,779 | $ 197,193 | $ 316,353 |
Cost of sales | 61,537 | 102,384 | 126,192 | 204,278 |
Gross profit | 36,285 | 55,395 | 71,001 | 112,075 |
Operating expenses, net: | ||||
Research and development | 22,922 | 24,930 | 46,262 | 49,250 |
Selling, general, and administrative | 19,757 | 24,274 | 39,660 | 50,657 |
Amortization of intangible assets | 4,243 | 10,386 | 8,460 | 23,918 |
Restructuring | 616 | 2,917 | 2,046 | 5,612 |
Acquisition costs | 1,316 | 2,657 | ||
Asset impairment | 252,343 | 252,343 | ||
Other, net | (44) | 443 | (80) | 286 |
Total operating expenses, net | 47,494 | 316,609 | 96,348 | 384,723 |
Operating income (loss) | (11,209) | (261,214) | (25,347) | (272,648) |
Interest income | 1,284 | 819 | 2,529 | 1,443 |
Interest expense | (5,495) | (5,264) | (10,941) | (10,511) |
Income (loss) before income taxes | (15,420) | (265,659) | (33,759) | (281,716) |
Income tax expense (benefit) | 145 | (28,025) | 336 | (28,255) |
Net income (loss) | $ (15,565) | $ (237,634) | $ (34,095) | $ (253,461) |
Income (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.33) | $ (5.02) | $ (0.72) | $ (5.35) |
Diluted (in dollars per share) | $ (0.33) | $ (5.02) | $ (0.72) | $ (5.35) |
Weighted average number of shares: | ||||
Basic (in shares) | 47,112 | 47,311 | 47,145 | 47,332 |
Diluted (in shares) | 47,112 | 47,311 | 47,145 | 47,332 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income (loss) | $ (15,565) | $ (237,634) | $ (34,095) | $ (253,461) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on available-for-sale securities | 18 | 8 | 45 | |
Foreign currency translation | 2 | (32) | 13 | |
Total other comprehensive income (loss), net of tax | 20 | (24) | 58 | |
Total comprehensive income (loss) | $ (15,545) | $ (237,658) | $ (34,037) | $ (253,461) |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Veeco have been prepared in accordance with U.S. GAAP as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 270 for interim financial information and with the instructions to Rule 10-01 of Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements as the interim information is an update of the information that was presented in Veeco’s most recent annual financial statements. For further information, refer to Veeco’s Consolidated Financial Statements and Notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. Veeco reports interim quarters on a 13-week basis ending on the last Sunday of each quarter. The fourth quarter always ends on the last day of the calendar year, December 31. The 2019 interim quarters end on March 31, June 30, and September 29, and the 2018 interim quarters ended on April 1, July 1, and September 30. These interim quarters are reported as March 31, June 30, and September 30 in Veeco’s interim consolidated financial statements. Revenue Recognition Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another.
When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach.
Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met.
In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets.
The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement.
The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less. The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue. Leases At contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined, and therefore the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for real estate leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02: Leases, which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which the Company adopted effective January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company has adopted using this transition method, and therefore prior period balances have not been adjusted. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company has elected certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs were not reassessed under the new standard. The adoption of the standard impacted the Company’s Consolidated Balance Sheets through the recognition of ROU assets and lease liabilities of approximately $14.2 million each as of January 1, 2019, but did not have an impact on the Consolidated Statements of Operations, Statements of Comprehensive Income, or Statements of Cash Flows.
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Income (Loss) Per Common Share |
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Income (Loss) Per Common Share | Note 2 — Income (Loss) Per Common Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income (loss) per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods the performance targets have been achieved. The computations of basic and diluted income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows:
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Assets |
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Assets | Note 3 — Assets Investments Short-term investments are generally classified as available-for-sale and reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income” in the Consolidated Balance Sheets. These securities may include U.S. treasuries, government agency securities, corporate debt, and commercial paper, all with maturities of greater than three months when purchased. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary are included in “Other, net” in the Consolidated Statements of Operations. Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. Veeco classifies certain assets based on the following fair value hierarchy: Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Veeco has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts. The following table presents the portion of Veeco’s assets that were measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018:
There were no transfers between fair value measurement levels during the three and six months ended June 30, 2019. At June 30, 2019 and December 31, 2018, the amortized cost and fair value of available-for-sale securities consist of:
There were no available-for-sale securities in a loss position at June 30, 2019. Available-for-sale securities in a loss position at December 31, 2018 consist of:
At June 30, 2019 and December 31, 2018, there were no short-term investments that had been in a continuous loss position for more than 12 months. The maturities of securities classified as available-for-sale at June 30, 2019 were all due in one year or less. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were no realized gains or losses for the three and six months ended June 30, 2019 and 2018. Accounts Receivable Accounts receivable is presented net of an allowance for doubtful accounts of $0.2 million and $0.3 million at June 30, 2019 and December 31, 2018, respectively. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Inventories at June 30, 2019 and December 31, 2018 consist of the following:
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily consist of supplier deposits, prepaid value-added tax, lease deposits, prepaid insurance, and prepaid licenses. Veeco had deposits with its suppliers of $15.8 million and $12.8 million at June 30, 2019 and December 31, 2018, respectively. Property, Plant, and Equipment Property, plant, and equipment at June 30, 2019 and December 31, 2018 consist of the following:
For the three and six months ended June 30, 2019, depreciation expense was $4.3 million and $8.9 million, respectively, and $4.2 million and $8.4 million for the comparable 2018 periods. Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. There were no changes to goodwill during the six months ended June 30, 2019. Intangible Assets Intangible assets consist of purchased technology, customer relationships, patents, trademarks and tradenames, and backlog, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined. The components of purchased intangible assets were as follows:
Other intangible assets primarily consist of patents, licenses, and backlog. Other Assets The Company has a non-marketable investment in Kateeva, Inc. (“Kateeva”), with a carrying value of $21.0 million at June 30, 2019 and December 31, 2018. Additionally, the Company has a non-marketable investment in a separate entity, with a carrying value of $3.5 million at June 30, 2019 and December 31, 2018. The Company does not exert significant influence over these investments, and its ownership interest is less than 20%. Neither equity investment has a readily observable market price, and therefore the Company has elected to measure these investments at cost, adjusted for changes in observable market prices minus impairment. The investments are included in “Other assets” on the Consolidated Balance Sheets. There were no changes in observable market prices for either investment for the six months ended June 30, 2019. These investments are subject to periodic impairment reviews; as there are no open-market valuations, the impairment analyses require judgment. The analyses include assessments of the companies’ financial condition, the business outlooks for their products and technologies, their projected results and cash flow, business valuation indications from recent rounds of financing, the likelihood of obtaining subsequent rounds of financing, and the impact of equity preferences held by Veeco relative to other investors. |
Liabilities |
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Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Note 4 — Liabilities Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities at June 30, 2019 and December 31, 2018 consist of:
Warranty Warranties are typically valid for one year from the date of system final acceptance, and Veeco estimates the costs that may be incurred under the warranty. Estimated warranty costs are determined by analyzing specific product and historical configuration statistics and regional warranty support costs and are affected by product failure rates, material usage, and labor costs incurred in correcting product failures during the warranty period. Unforeseen component failures or exceptional component performance can also result in changes to warranty costs. Changes in product warranty reserves for the six months ended June 30, 2019 include:
Restructuring Accruals During the second quarter of 2018, the Company initiated plans to further reduce excess capacity associated with the manufacture and support of the Company's advanced packaging lithography and 3D wafer inspection systems by consolidating these operations into its San Jose, California facility. As a result of this and other cost saving initiatives, the Company announced headcount reductions of approximately 40 employees. During the six months ended June 30, 2019, additional accruals were recognized and payments were made related to these restructuring initiatives. The Company continued to record restructuring charges during the three and six months ended June 30, 2019 in an effort to streamline operations, enhance efficiencies, and reduce costs.
Customer Deposits and Deferred Revenue Customer deposits totaled $34.6 million and $28.3 million at June 30, 2019 and December 31, 2018, respectively. Deferred revenue represents amounts billed, other than deposits, in excess of the revenue that can be recognized on a particular contract at the balance sheet date. Changes in deferred revenue were as follows:
As of June 30, 2019, the Company has approximately $65.1 million of remaining performance obligations on contracts with an original estimated duration of one year or more, of which approximately 64% is expected to be recognized within one year, with the remaining amounts expected to be recognized between one to three years. The Company has elected to exclude disclosures regarding remaining performance obligations that have an original expected duration of one year or less. Convertible Senior Notes On January 10, 2017, the Company issued $345.0 million of 2.70% convertible senior unsecured notes (the “Convertible Senior Notes”). The Company received net proceeds, after deducting underwriting discounts and fees and expenses payable by the Company, of approximately $335.8 million. The Convertible Senior Notes bear interest at a rate of 2.70% per year, payable semiannually in arrears on January 15 and July 15 of each year, commencing on July 15, 2017. The Convertible Senior Notes mature on January 15, 2023 (the “Maturity Date”), unless earlier purchased by the Company, redeemed, or converted. The carrying value of the Convertible Senior Notes is as follows:
Total interest expense related to the Convertible Senior Notes is as follows:
The Company determined the Convertible Senior Notes is a Level 2 liability in the fair value hierarchy and estimated its fair value as $305.3 million at June 30, 2019. Other Liabilities As part of the acquisition of Ultratech, the Company assumed an executive non-qualified deferred compensation plan that allowed qualifying executives to defer cash compensation. The plan was frozen at the time of acquisition and no further contributions have been made. At June 30, 2019 and December 31, 2018, plan assets approximated $3.5 million and $3.2 million, respectively, representing the cash surrender value of life insurance policies and is included within “Other assets” in the Consolidated Balance Sheets, while plan liabilities approximated $3.0 million and $3.5 million, respectively, and is included within “Other liabilities” in the Consolidated Balance Sheets. Other liabilities also included medical and dental benefits of $2.0 million and $2.2 million at June 30, 2019 and December 31, 2018, respectively, and asset retirement obligations of $3.2 million and income tax payables of $1.0 million at both June 30, 2019 and December 31, 2018. |
Commitments and Contingencies |
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Commitments and Contingencies | Note 5 — Commitments and Contingencies Leases The Company’s operating leases primarily include real estate leases for properties used for manufacturing, R&D activities, sales and service, and administration, as well as certain equipment leases. Some leases may include options to renew for a period of up to 5 years, while others may include options to terminate the lease. The weighted average remaining lease term of the Company’s operating leases as of June 30, 2019 was 3 years, and the weighted average discount rate used in determining the present value of future lease payments was 6.0%. Minimum lease commitments at June 30, 2019 for property and equipment under operating lease agreements are payable as follows:
Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements were payable as follows:
Operating lease cost for the three and six months ended June 30, 2019 were $1.4 million and $2.8 million, respectively. Variable lease cost for the three and six months ended June 30, 2019 were $0.4 million and $1.0 million, respectively. Additionally, the Company has an immaterial amount of short term leases. Lease expense for the three and six months ended June 30, 2018 was $1.8 million and $3.8 million, respectively. Operating cash outflows from operating leases for the six months ended June 30, 2019 was $3.7 million. Purchase Commitments Veeco has purchase commitments of $84.5 million at June 30, 2019, substantially all of which become due within one year. Bank Guarantees Veeco has bank guarantees and letters of credit issued by a financial institution on its behalf as needed. At June 30, 2019, outstanding bank guarantees and letters of credit totaled $7.9 million, and unused bank guarantees and letters of credit of $66.9 million were available to be drawn upon. Legal Proceedings On June 8, 2018, an Ultratech shareholder who received Veeco stock as part of the consideration for the Ultratech acquisition filed a purported class action complaint in the Superior Court of the State of California, County of Santa Clara, captioned Wolther v. Maheshwari et al., Case No. 18CV329690, on behalf of himself and others who purchased or acquired shares of Veeco pursuant to the registration statement and prospectus which Veeco filed with the SEC in connection with the Ultratech acquisition (the “Wolther Action”). On August 2 and August 8, 2018, two purported class action complaints substantially similar to the Wolther Action were filed on behalf of different plaintiffs in the same court as the Wolther Action. These cases have been consolidated with the Wolther Action, and a consolidated complaint was filed on December 11, 2018. The consolidated complaint seeks to recover damages and fees under Sections 11, 12, and 15 of the Securities Act of 1933 for, among other things, alleged false/misleading statements in the registration statement and prospectus relating to the Ultratech acquisition, relating primarily to the alleged failure to disclose delays in the advanced packaging business, increased MOCVD competition in China, and an intellectual property dispute. Veeco is defending this matter vigorously. On December 21, 2018, a purported Veeco stockholder filed a derivative action in the Superior Court of the State of California, County of Santa Clara, captioned Vladimir Gusinsky Revocable Trust v. Peeler, et al., Case No. 18CV339925, on behalf of nominal defendant Veeco. The complaint seeks to assert claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against current and former Veeco directors premised on purported misstatements and omissions in the registration statement relating to the Ultratech acquisition. The court ordered this action stayed until a future case management conference. Veeco is defending this matter vigorously.
The Company is involved in various other legal proceedings arising in the normal course of business. The Company does not believe that the ultimate resolution of these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows. |
Derivative Financial Instruments |
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Derivative Financial Instruments | Note 6 — Derivative Financial Instruments The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rates could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted cash flows. The Company enters into monthly forward derivative contracts with the intent of mitigating a portion of this risk. The Company only uses derivative financial instruments in the context of hedging and not for speculative purposes and had not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts are recorded as “Other, net” in the Company’s Consolidated Statements of Operations. The Company executes derivative transactions with highly rated financial institutions to mitigate counterparty risk. The Company did not have any outstanding derivative contracts at June 30, 2019 or December 31, 2018. Additionally, the Company did not have any gains or losses from currency exchange derivatives during the six months ended June 30, 2019. The following table shows the gains and (losses) from currency exchange derivatives during the three and six months ended June 30, 2018, which are included in “Other, net” in the Consolidated Statements of Operations, as well as the weighted average notional amount of derivatives outstanding for the period:
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Equity |
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Equity | Note 7 — Equity Statement of Stockholders’ Equity The following tables present the changes in Stockholders’ Equity:
Accumulated Other Comprehensive Income (“AOCI”) The following table presents the changes in the balances of each component of AOCI, net of tax:
There were minimal reclassifications from AOCI into net income for the three and six months ended June 30, 2019 and 2018. |
Share-based compensation |
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Share-based compensation | Note 8 — Share-based compensation Restricted share awards are issued to employees that are subject to specified restrictions and a risk of forfeiture. The restrictions typically lapse over one to five years and may entitle holders to dividends and voting rights. Other types of share-based compensation include performance share awards, performance share units, and restricted share units (collectively with restricted share awards, “restricted shares”), as well as options to purchase common stock. Share-based compensation expense was recognized in the following line items in the Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018:
For the six months ended June 30, 2019, equity activity related to stock options was as follows:
For the six months ended June 30, 2019, equity activity related to non-vested restricted shares and performance shares was as follows:
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Income Taxes |
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Income Taxes | Note 9 — Income Taxes Income taxes are estimated for each of the jurisdictions in which the Company operates. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Realization of net deferred tax assets is dependent on future taxable income. At June 30, 2019, the Company’s U.S. deferred tax assets are fully offset by a valuation allowance since the Company cannot conclude that it is more likely than not that these future benefits will be realized. At the end of each interim reporting period, the effective tax rate is aligned with expectations for the full year. This estimate is used to determine the income tax provision on a year-to-date basis and may change in subsequent interim periods. If necessary, the year-to-date tax benefit for interim period losses is limited to the amount that could be recognizable at the end of the fiscal year. Loss before income taxes and income tax expense (benefit) for the three and six months ended June 30, 2019 and 2018 were as follows:
The Company’s tax expense for the three months ended June 30, 2019 was $0.1 million, compared to a tax benefit of $28.0 million for the comparable prior period. The 2019 tax expense included a $0.1 million expense related to the Company’s domestic operations and minimal expense related to the Company’s non-U.S. operations, compared to 2018 when the benefit included a $1.3 million benefit related to the Company’s domestic operations, and a $26.7 million benefit related to the Company’s non-U.S. operations. Although there was a domestic pre-tax loss for the three months ended June 30, 2019 and 2018, the Company did not provide a current tax benefit on domestic pre-tax losses, as the amounts are not realizable on a more-likely-than-not basis. The domestic tax expense for the current period is primarily attributable to the tax amortization of indefinite-lived intangible assets that is not available to offset U.S. deferred tax assets. The non-U.S. tax expense for the three months ended June 30, 2019 is primarily attributable to tax expense on non-U.S operation profits and foreign withholding taxes on unremitted earnings as of June 30, 2019, offset by the amortization of intangible assets. The Company’s tax expense for the six months ended June 30, 2019 was $0.3 million, compared to a tax benefit of $28.3 million for the comparable prior period. The 2019 tax expense included a $0.1 million expense related to the Company’s domestic operations, and $0.2 million expense related to the Company’s non-U.S. operations, compared to 2018 when the benefit included a $1.2 million benefit related to the Company’s domestic operations, and a $27.1 million benefit related to the Company’s non-U.S. operations. Although there was a domestic pre-tax loss for the six months ended June 30, 2019 and 2018, the Company did not provide a current tax benefit on domestic pre-tax losses, as the amounts are not realizable on a more-likely-than-not basis. The domestic tax expense for the current period is primarily attributable to the tax amortization of indefinite-lived intangible assets that is not available to offset U.S. deferred tax assets. The non-U.S. tax expense for the six months ended June 30, 2019 is primarily attributable to tax expense on non-U.S operation profits and foreign withholding taxes on unremitted earnings as of June 30, 2019, offset by the amortization of intangible assets. The domestic tax benefit for the three and six months ended June 30, 2018 is primarily attributable to refundable alternative minimum tax credits in accordance with the 2017 Tax Act, offset by the tax amortization of indefinite-lived intangible assets that is not available to offset U.S. deferred tax assets. The non-U.S. tax benefit for the three and six months ended June 30, 2018 is primarily attributable to the deferred tax benefit recognized on the intangible asset impairment charge incurred during the period.
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Segment Reporting and Geographic Information |
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Segment Reporting and Geographic Information | Note 10 — Segment Reporting and Geographic Information Veeco operates and measures its results in one operating segment and therefore has one reportable segment: the design, development, manufacture, and support of thin film process equipment primarily sold to make electronic devices. Veeco categorizes its sales into the following four end-markets: Advanced Packaging, MEMS & RF Filters Advanced Packaging includes a portfolio of wafer-level assembly technologies that enable the miniaturization and performance improvement of electronic products, such as smartphones, smartwatches, tablets, and laptops. Micro-Electro Mechanical Systems (“MEMS”) includes tiny mechanical devices such as sensors, switches, mirrors, and actuators embedded in semiconductor chips used in vehicles, smartphones, tablets, and games. RF Filters refers to RF filters used in smartphones, tablets, and mobile devices. LED Lighting, Display & Compound Semiconductor LED Lighting refers to Light Emitting Diode (“LED”) and semiconductor illumination sources used in various applications including, but not limited to, displays such as backlights, general lighting, automotive running lights, and headlamps. Display refers to LEDs used for displays and Organic Light Emitting Diode (“OLED”) displays found in outdoor display/signage applications, TVs, smartphones, wearable devices, and tablets. Compound Semiconductor includes Photonics, Power Electronics, and Radio Frequency (“RF”) Devices. Photonics refers to laser diodes, Vertical Cavity Surface Emitting Lasers (“VCSEL”) in 3D sensing and communications, and various other optical devices. Power Electronics refers to semiconductor devices such as rectifiers, inverters, and converters for the control and conversion of electric power. RF devices refers to radio frequency emitting and receiving devices that enable wireless communications. Such devices include power amplifiers, switches, and transceivers for applications such as mobile (including handsets and base stations), defense, automobile, and the Internet of Things. Front-End Semiconductor Front-End Semiconductor refers to the early steps in the process of integrated circuit fabrication where the microchips are created but still remain on the silicon wafer. This category includes Laser Spike Anneal, Ion Beam etch for front-end semiconductor applications, and Ion Beam deposition for EUV mask blanks. Scientific & Industrial Scientific refers to advanced materials research at university research institutions, industry research institutions, industry consortiums, and government research agencies. Industrial refers to large-scale product manufacturing applications including data storage and optical coatings: thin layers of material deposited on a lens or mirror that alters how light reflects and transmits. Sales by end-market and geographic region for the three and six months ended June 30, 2019 and 2018 were as follows:
For geographic reporting, sales are attributed to the location in which the customer facility is located. |
Basis of Presentation (Policies) |
6 Months Ended |
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Basis of Presentation | |
Basis of Presentation | The accompanying unaudited Consolidated Financial Statements of Veeco have been prepared in accordance with U.S. GAAP as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 270 for interim financial information and with the instructions to Rule 10-01 of Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements as the interim information is an update of the information that was presented in Veeco’s most recent annual financial statements. For further information, refer to Veeco’s Consolidated Financial Statements and Notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. |
Fiscal Period | Veeco reports interim quarters on a 13-week basis ending on the last Sunday of each quarter. The fourth quarter always ends on the last day of the calendar year, December 31. The 2019 interim quarters end on March 31, June 30, and September 29, and the 2018 interim quarters ended on April 1, July 1, and September 30. These interim quarters are reported as March 31, June 30, and September 30 in Veeco’s interim consolidated financial statements. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another.
When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach.
Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met.
In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets.
The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement.
The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less. The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue. |
Leases | Leases At contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined, and therefore the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for real estate leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02: Leases, which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which the Company adopted effective January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company has adopted using this transition method, and therefore prior period balances have not been adjusted. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company has elected certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs were not reassessed under the new standard. The adoption of the standard impacted the Company’s Consolidated Balance Sheets through the recognition of ROU assets and lease liabilities of approximately $14.2 million each as of January 1, 2019, but did not have an impact on the Consolidated Statements of Operations, Statements of Comprehensive Income, or Statements of Cash Flows.
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Income (Loss) Per Common Share (Tables) |
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Schedule of basic and diluted income (loss) per share and weighted average shares |
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Assets (Tables) |
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Schedule of portion of Veeco's assets (excluding cash balances) that are measured at fair value on a recurring basis |
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Trading Securities And Certain Trading Asset [Table Text Block] |
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Schedule of fair value and unrealized losses of available-for-sale securities in a loss position |
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Schedule of inventories |
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Schedule of property, plant, and equipment |
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Schedule of intangible assets excluding goodwill |
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Liabilities (Tables) |
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Schedule of accrued expenses and other current liabilities |
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Schedule of changes in product warranty reserves |
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Schedule of restructuring accrual activities |
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Schedule of changes in deferred revenue |
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Schedule of carrying value of Convertible Senior Notes |
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Schedule of interest expense related to Convertible Senior Notes |
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Commitments and Contingencies (Tables) |
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Schedule of minimum lease commitments 2019 | Minimum lease commitments at June 30, 2019 for property and equipment under operating lease agreements are payable as follows:
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Schedule of minimum lease commitments 2018 | Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements were payable as follows:
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Derivative Financial Instruments (Tables) |
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Schedule of gains and (losses) and weighted average notional amount of derivatives |
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Equity (Tables) |
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Schedule of Stockholders' Equity |
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Schedule of the changes in the balances of each component of AOCI, net of tax |
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Share-based compensation (Tables) |
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Share-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share-based compensation expense |
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Summary of stock option activity |
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Summary of non-vested restricted and performance shares activity |
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loss before income taxes and income tax benefit |
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Segment Reporting and Geographic Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting and Geographic Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of sales by end-market |
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Basis of Presentation - Fiscal Period (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Basis of Presentation | |
Fiscal period duration (in days) | 91 days |
Basis of Presentation - Revenue Recognition (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Basis of Presentation | |
Billing retention recognized at time of transfer of control (as a percent) | 10.00% |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract | true |
Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jan. 01, 2019 |
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Accounting Changes | ||
Lease, Practical Expedients, Package | true | |
Operating lease right-of-use assets | $ 11,543 | |
Operating lease liability | $ 11,606 | |
ASU 2016-02 | Adjustment | ||
Accounting Changes | ||
Operating lease right-of-use assets | $ 14,200 | |
Operating lease liability | $ 14,200 |
Income (Loss) Per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Income (Loss) Per Common Share | ||||||
Net income (loss) | $ (15,565) | $ (18,530) | $ (237,634) | $ (15,827) | $ (34,095) | $ (253,461) |
Net income (loss) per common share: | ||||||
Basic (in dollars per share) | $ (0.33) | $ (5.02) | $ (0.72) | $ (5.35) | ||
Diluted (in dollars per share) | $ (0.33) | $ (5.02) | $ (0.72) | $ (5.35) | ||
Weighted average shares reconciliation | ||||||
Basic weighted average shares outstanding | 47,112 | 47,311 | 47,145 | 47,332 | ||
Diluted weighted average shares outstanding | 47,112 | 47,311 | 47,145 | 47,332 |
Income (Loss) Per Common Share - Shares Excluded from EPS (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Common share equivalents | ||||
Diluted income (loss) per share | ||||
Securities excluded from the diluted calculation as their effect would be antidilutive | 498 | 22 | 344 | 23 |
Potentially dilutive shares | ||||
Diluted income (loss) per share | ||||
Securities excluded from the diluted calculation as their effect would be antidilutive | 1,903 | 2,706 | 1,933 | 2,204 |
Convertible Notes | ||||
Diluted income (loss) per share | ||||
Securities excluded from the diluted calculation as their effect would be antidilutive | 8,618 | 8,618 | 8,618 | 8,618 |
Assets - Accounts Receivable (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets | ||
Allowance for doubtful accounts receivable | $ 0.2 | $ 0.3 |
Assets - Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventories | ||
Materials | $ 85,721 | $ 90,816 |
Work-in-process | 36,236 | 42,354 |
Finished goods | 17,751 | 23,141 |
Total | $ 139,708 | $ 156,311 |
Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Prepaid expenses and other current assets | ||
Deposits with suppliers | $ 15.8 | $ 12.8 |
Assets - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
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Property, plant, and equipment | |||||
Gross property, plant and equipment | $ 210,798 | $ 210,798 | $ 204,211 | ||
Less: accumulated depreciation and amortization | 130,037 | 130,037 | 123,927 | ||
Net property, plant, and equipment | 80,761 | 80,761 | 80,284 | ||
Depreciation expense | 4,300 | $ 4,200 | 8,900 | $ 8,400 | |
Land | |||||
Property, plant, and equipment | |||||
Gross property, plant and equipment | 5,669 | 5,669 | 5,669 | ||
Building and improvements | |||||
Property, plant, and equipment | |||||
Gross property, plant and equipment | 61,407 | 61,407 | 61,124 | ||
Machinery and equipment | |||||
Property, plant, and equipment | |||||
Gross property, plant and equipment | 136,930 | 136,930 | 128,385 | ||
Leaseholds improvements | |||||
Property, plant, and equipment | |||||
Gross property, plant and equipment | $ 6,792 | $ 6,792 | $ 9,033 |
Assets - Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Goodwill | |
Changes in goodwill during the period | $ 0.0 |
Assets - Other Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Other Investment | ||
Change in observable market prices | $ 0 | |
Kateeva | ||
Other Investment | ||
Carrying value of investment | 21,000 | $ 21,000 |
Separate non-marketable investment | ||
Other Investment | ||
Amount of investment made | $ 3,500 | $ 3,500 |
Separate non-marketable investment | Maximum | ||
Other Investment | ||
Percentage ownership of cost method investee | 20.00% |
Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Accrued expenses and other current liabilities | ||
Payroll and related benefits | $ 14,768 | $ 20,486 |
Warranty | 7,099 | 7,852 |
Operating lease liability | 4,440 | |
Interest | 4,321 | 4,321 |
Professional fees | 2,219 | 2,897 |
Sales, use, and other taxes | 1,547 | 2,670 |
Restructuring liability | 1,336 | 2,213 |
Other | 7,067 | 6,011 |
Total | $ 42,797 | $ 46,450 |
Liabilities - Warranty (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Warranty | |
Warranty period | 1 year |
Balance, beginning of the year | $ 7,852 |
Warranties issued | 2,518 |
Consumption of reserves | (3,350) |
Changes in estimate | 79 |
Balance, end of the year | $ 7,099 |
Liabilities - Restructuring Accruals (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
employee
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
|
Restructuring Accruals | ||||
Number of employees terminated | employee | 40 | |||
Restructuring charges | $ 616 | $ 2,917 | $ 2,046 | $ 5,612 |
Restructuring accruals roll forward | ||||
Balance at the beginning of the period | 2,213 | |||
Provision | 2,046 | |||
Payments | (2,923) | |||
Balance at the end of the period | 1,336 | 1,336 | ||
Personnel severance and related costs | ||||
Restructuring accruals roll forward | ||||
Balance at the beginning of the period | 2,143 | |||
Provision | 1,910 | |||
Payments | (2,717) | |||
Balance at the end of the period | $ 1,336 | 1,336 | ||
Facility Related Costs and Other | ||||
Restructuring accruals roll forward | ||||
Balance at the beginning of the period | 70 | |||
Provision | 136 | |||
Payments | $ (206) |
Liabilities - Customer Deposits and Deferred Revenue (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Liabilities | ||
Customer deposits and deferred revenue | $ 34,600 | $ 28,300 |
Changes in deferred revenue | ||
Beginning balance | 44,415 | |
Deferral of revenue | 12,012 | |
Recognition of previously deferred revenue | (6,977) | |
Ending balance | $ 49,450 |
Liabilities - Performance Obligations Amount (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Liabilities | |
Remaining performance obligations | $ 65.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Performance obligations | |
Remaining performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Performance obligations | |
Remaining performance obligations, expected timing of satisfaction | 2 years |
Liabilities - Performance Obligations Timing (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Liabilities | |
Revenue, Practical Expedient, Remaining Performance Obligation | true |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Performance obligations | |
Percentage of remaining performance obligation expected to be recognized | 64.00% |
Liabilities - Convertible Senior Notes (Details) - Convertible Notes - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jan. 10, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
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Debt | ||||||
Principal amount | $ 345,000 | $ 345,000 | $ 345,000 | $ 345,000 | ||
Interest rate (as a percent) | 2.70% | |||||
Proceeds received, net of transaction fees | $ 335,800 | |||||
Unamortized debt discount | (46,686) | (46,686) | (52,336) | |||
Unamortized transaction costs | (4,703) | (4,703) | (5,272) | |||
Net carrying value | 293,611 | 293,611 | $ 287,392 | |||
Cash Interest Expense | ||||||
Coupon interest expense | 2,329 | $ 2,329 | 4,658 | $ 4,658 | ||
Non-Cash Interest Expense | ||||||
Amortization of debt discount | 2,851 | 2,646 | 5,650 | 5,243 | ||
Amortization of transaction costs | 287 | 266 | 569 | 528 | ||
Total Interest Expense | 5,467 | $ 5,241 | 10,877 | $ 10,429 | ||
Estimated fair value | $ 305,300 | $ 305,300 | ||||
Convertible Debt, Fair Value by Fair Value Hierarchy Level [Extensible List] | Fair Value Inputs Level2 [Member] | Fair Value Inputs Level2 [Member] |
Liabilities - Other Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Assets | ||
Other liabilities | ||
Deferred compensation plan assets | $ 3.5 | $ 3.2 |
Other Liabilities | ||
Other liabilities | ||
Deferred compensation plan liabilities | 3.0 | 3.5 |
Asset retirement obligations | 3.2 | 3.2 |
Medical and dental benefits | 2.0 | 2.2 |
Income taxes payable | $ 1.0 | $ 1.0 |
Commitments and Contingencies - Lease terms (Details) |
Jun. 30, 2019 |
---|---|
Leases | |
Lease Renewal Term | 5 years |
Remaining lease term | 3 years |
Weighted average discount rate (as a percent) | 6.00% |
Commitments and Contingencies - Minimum lease commitments 2019 (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
Minimum lease commitments, Payments due by period: | |
2019 | $ 2,450 |
2020 | 5,119 |
2021 | 2,439 |
2022 | 1,356 |
2023 | 865 |
Thereafter | 551 |
Total future minimum lease payments | 12,780 |
Less: Imputed interest | (1,174) |
Total operating lease liabilities | 11,606 |
Operating lease liability, current | $ 4,440 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and Other Liabilities, Current |
Operating lease liability, noncurrent | $ 7,166 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liability, noncurrent |
Total operating lease liabilities | $ 11,606 |
Commitments and Contingencies - Minimum lease commitments 2018 (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Minimum lease commitments, Payments due by period: | |
2019 | $ 5,143 |
2020 | 5,056 |
2021 | 2,432 |
2022 | 1,812 |
2023 | 1,066 |
Thereafter | 548 |
Total | $ 16,057 |
Commitments and Contingencies - Lease costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Lease cost | ||
Operating lease cost | $ 1.4 | $ 2.8 |
Variable lease cost | 0.4 | 1.0 |
Lease expense | $ 1.8 | 3.8 |
Operating cash flows from operating leases | $ 3.7 |
Commitments and Contingencies - Purchase Commitments and Bank Guarantees (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Purchase commitments | |
Purchase commitments due within one year | $ 84.5 |
Bank guarantees | |
Bank guarantees and letters of credit outstanding | 7.9 |
Unused bank guarantees and letters of credit | $ 66.9 |
Commitments and Contingencies - Legal Proceedings (Detail) |
Aug. 08, 2018
case
|
---|---|
Ultratech acquisition litigation | |
Legal Proceedings | |
Number of purported class action complaints filed | 2 |
Derivative Financial Instruments (Details) - Not designated as hedges - Foreign currency exchange forwards - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
|
Derivative Financial Instruments | ||
Gains (losses) | $ 199 | $ 216 |
Weighted average notional amount | $ 5,376 | $ 2,392 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Tax reconciliation disclosures | ||||
Loss before income taxes | $ (15,420) | $ (265,659) | $ (33,759) | $ (281,716) |
Income tax expense (benefit) | 145 | (28,025) | 336 | (28,255) |
Domestic | ||||
Tax reconciliation disclosures | ||||
Income tax expense (benefit) | $ 100 | (1,300) | 100 | (1,200) |
Foreign tax | ||||
Tax reconciliation disclosures | ||||
Income tax expense (benefit) | $ (26,700) | $ 200 | $ (27,100) |