0001039399-23-000019 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 112,360	$ 109,130
Marketable securities	123,891	129,006
Accounts receivable, net of allowance for credit losses of $169 and $168	103,969	88,143
Inventories, net	116,553	123,157
Restricted cash	1,207	1,221
Prepaid expenses and other current assets	22,941	23,895
Total current assets	480,921	474,552
Restricted cash	2,287	2,631
Operating lease, right-of-use-assets	30,420	31,362
Property, plant and equipment, net of accumulated depreciation	198,232	189,848
Goodwill	211,773	211,444
Intangibles, net	24,486	26,751
Deferred tax assets	67,951	67,646
Other assets	3,686	3,994
Total assets	1,019,756	1,008,228
Current liabilities:
Accounts payable	63,756	69,308
Accrued liabilities	31,981	42,115
Current portion of term loan, net of unamortized issuance costs	1,142	1,045
Deferred revenue	23,779	29,846
Operating lease liabilities	7,512	7,353
Total current liabilities	128,170	149,667
Term loan, less current portion, net of unamortized issuance costs	14,034	14,389
Deferred tax liabilities	2,905	2,732
Long-term operating lease liabilities	26,407	27,587
Deferred grant	18,000	0
Other liabilities	5,868	5,568
Total liabilities	195,384	199,943
Stockholders’ equity:
Common stock, $0.001 par value	77	77
Additional paid-in capital	858,195	844,842
Accumulated other comprehensive loss	(4,186)	(5,578)
Accumulated deficit	(29,714)	(31,056)
Total stockholders’ equity	824,372	808,285
Total liabilities and stockholders’ equity	$ 1,019,756	$ 1,008,228

Restructuring Charges (Tables)

3 Months Ended

Apr. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring Costs by Reportable Segment

Total restructuring charges for both the 2022 and 2021 restructuring plans included in our Condensed Consolidated Statements of Income were as follows (in thousands):


	Three Months Ended
	April 1, 2023						March 26, 2022
	Probe Cards		Systems		Total		Probe Cards		Systems		Total
Cost of revenues	$	70	$	(45)	$	25	$	39	$	100	$	139
Research and development	4		66		70		—		146		146
Selling, general and administrative	1,060		62		1,122		3		25		28
	$	1,134	$	83	$	1,217	$	42	$	271	$	313

Schedule of Restructuring Accrual Activity

Changes to the restructuring accrual in the three months ended April 1, 2023 were as follows (in thousands):


	Employee Severance and Benefits		Stock-based Compensation		Inventory Impairments & Other Inventory Related Costs		Total
December 31, 2022	$	1,249	$	—	$	—	$	1,249
Restructuring charges	842		295		80		1,217
Cash payments	(1,715)		—		(63)		(1,778)

Non-cash settlement	—		(295)		(17)		(312)
April 1, 2023	$	376	$	—	$	—	$	376

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2023	Apr. 01, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash received from grant	$ 18,000	$ 18,000	$ 0
Grant term	5 years

Accrued Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 20,028	$ 15,864
Accrued income and other taxes	3,241	12,817
Accrued warranty	3,872	4,199
Employee stock purchase plan contributions withheld	1,533	4,585
Accrued restructuring charges	376	1,249
Other accrued expenses	2,931	3,401
Accrued liabilities	$ 31,981	$ 42,115

Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 2,378	$ 2,369
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract]
Remainder of 2023	4,813
2024	4,611
2025	4,268
2026	3,175
2027	2,832
Thereafter	4,387
Net	24,086
Cost of revenues
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	831	808
Selling, general and administrative
Property, Plant and Equipment [Line Items]
Amortization of intangible assets	$ 1,547	$ 1,561

Cover Page - shares	3 Months Ended
Cover Page - shares	Apr. 01, 2023	May 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	000-50307
Entity Registrant Name	FormFactor, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3711155
Entity Address, Address Line One	7005 Southfront Road
Entity Address, City or Town	Livermore
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94551
City Area Code	925
Local Phone Number	290-4000
Title of 12(b) Security	Common stock, $0.001 par value
Trading Symbol	FORM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		77,144,094
Amendment Flag	false
Entity Central Index Key	0001039399
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Statement [Abstract]
Revenues	$ 167,448	$ 197,174
Cost of revenues	106,370	102,950
Gross profit	61,078	94,224
Operating expenses:
Research and development	28,245	27,134
Selling, general and administrative	32,742	32,906
Total operating expenses	60,987	60,040
Operating income	91	34,184
Interest income (expense), net	1,276	(54)
Other income, net	23	192
Income before income taxes	1,390	34,322
Provision for income taxes	48	4,450
Net income	$ 1,342	$ 29,872
Net income per share:
Basic (in dollars per share)	$ 0.02	$ 0.38
Diluted (in dollars per share)	$ 0.02	$ 0.38
Weighted-average number of shares used in per share calculations:
Basic (in shares)	77,066	78,246
Diluted (in shares)	77,255	79,468

Stockholders’ Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Equity Incentive Plan - Restricted Stock Units	3 Months Ended
	Apr. 01, 2023 $ / shares shares
Units
Beginning balance (in shares) \| shares	2,227,081
Awards granted (in shares) \| shares	79,020
Awards vested (in shares) \| shares	(30,751)
Awards canceled (in shares) \| shares	(82,523)
Ending balance (in shares) \| shares	2,192,827
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 35.28
Awards granted (in dollars per share) \| $ / shares	25.51
Awards vested (in dollars per share) \| $ / shares	34.87
Awards canceled (in dollars per share) \| $ / shares	35.16
Ending balance (in dollars per share) \| $ / shares	$ 34.94

Operating Segments and Enterprise-Wide Information - Revenue by Segment, Recognition Type, and Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 167,448	$ 197,174
Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	127,328	159,983
Systems
Disaggregation of Revenue [Line Items]
Revenues	40,120	37,191
Taiwan
Disaggregation of Revenue [Line Items]
Revenues	40,329	53,069
Taiwan \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	38,897	42,522
Taiwan \| Systems
Disaggregation of Revenue [Line Items]
Revenues	1,432	10,547
United States
Disaggregation of Revenue [Line Items]
Revenues	37,731	25,647
United States \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	24,641	19,976
United States \| Systems
Disaggregation of Revenue [Line Items]
Revenues	13,090	5,671
China
Disaggregation of Revenue [Line Items]
Revenues	27,099	38,399
China \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	18,476	32,791
China \| Systems
Disaggregation of Revenue [Line Items]
Revenues	8,623	5,608
South Korea
Disaggregation of Revenue [Line Items]
Revenues	20,775	27,501
South Korea \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	19,572	24,881
South Korea \| Systems
Disaggregation of Revenue [Line Items]
Revenues	1,203	2,620
Malaysia
Disaggregation of Revenue [Line Items]
Revenues	11,270	22,199
Malaysia \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	10,324	21,517
Malaysia \| Systems
Disaggregation of Revenue [Line Items]
Revenues	946	682
Japan
Disaggregation of Revenue [Line Items]
Revenues	10,977	9,382
Japan \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	7,136	4,785
Japan \| Systems
Disaggregation of Revenue [Line Items]
Revenues	3,841	4,597
Europe
Disaggregation of Revenue [Line Items]
Revenues	9,426	8,395
Europe \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	3,426	2,382
Europe \| Systems
Disaggregation of Revenue [Line Items]
Revenues	6,000	6,013
Singapore
Disaggregation of Revenue [Line Items]
Revenues	5,340	10,896
Singapore \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	3,200	10,284
Singapore \| Systems
Disaggregation of Revenue [Line Items]
Revenues	2,140	612
Rest of the world
Disaggregation of Revenue [Line Items]
Revenues	4,501	1,686
Rest of the world \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	1,656	845
Rest of the world \| Systems
Disaggregation of Revenue [Line Items]
Revenues	2,845	841
Products transferred at a point in time
Disaggregation of Revenue [Line Items]
Revenues	163,388	194,252
Products transferred at a point in time \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	126,678	158,836
Products transferred at a point in time \| Systems
Disaggregation of Revenue [Line Items]
Revenues	36,710	35,416
Products and services transferred over time
Disaggregation of Revenue [Line Items]
Revenues	4,060	2,922
Products and services transferred over time \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	650	1,147
Products and services transferred over time \| Systems
Disaggregation of Revenue [Line Items]
Revenues	3,410	1,775
Foundry & Logic
Disaggregation of Revenue [Line Items]
Revenues	101,562	114,121
Foundry & Logic \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	101,562	114,121
Foundry & Logic \| Systems
Disaggregation of Revenue [Line Items]
Revenues	0	0
DRAM
Disaggregation of Revenue [Line Items]
Revenues	19,890	34,437
DRAM \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	19,890	34,437
DRAM \| Systems
Disaggregation of Revenue [Line Items]
Revenues	0	0
Flash
Disaggregation of Revenue [Line Items]
Revenues	5,876	11,425
Flash \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	5,876	11,425
Flash \| Systems
Disaggregation of Revenue [Line Items]
Revenues	0	0
Systems
Disaggregation of Revenue [Line Items]
Revenues	40,120	37,191
Systems \| Probe Cards
Disaggregation of Revenue [Line Items]
Revenues	0	0
Systems \| Systems
Disaggregation of Revenue [Line Items]
Revenues	$ 40,120	$ 37,191

Fair Value and Derivative Instruments (Tables)

3 Months Ended

Apr. 01, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


April 1, 2023	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	44,777	$	—	$	—	$	44,777
Commercial paper	—		4,475		—		4,475



	44,777		4,475		—		49,252
Marketable securities:
U.S. treasuries	25,144		—		—		25,144
Certificates of deposit	—		471		—		471
U.S. agency securities	—		13,062		—		13,062
Corporate bonds	—		53,899		—		53,899
Commercial paper	—		31,315		—		31,315
	25,144		98,747		—		123,891
Foreign exchange derivative contracts	—		763		—		763
Promissory note receivable	—		—		943		943
Interest rate swap derivative contracts	—		2,041		—		2,041
Total assets	$	69,921	$	106,026	$	943	$	176,890
Liabilities:

Interest rate swap derivative contracts	$	—	$	(2)	$	—	$	(2)

Total liabilities	$	—	$	(2)	$	—	$	(2)


December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	21,279	$	—	$	—	$	21,279
Commercial paper	—		4,969		—		4,969

U.S. agency securities	—		996		—		996
	21,279		5,965		—		27,244
Marketable securities:
U.S. treasuries	25,019		—		—		25,019
Certificates of deposit	—		706		—		706
U.S. agency securities	—		11,045		—		11,045
Corporate bonds	—		67,396		—		67,396
Commercial paper	—		24,840		—		24,840
	25,019		103,987		—		129,006
Foreign exchange derivative contracts	—		664		—		664
Promissory note receivable	—		—		943		943
Interest rate swap derivative contracts	—		2,374		—		2,374
Total assets	$	46,298	$	112,990	$	943	$	160,231
Liabilities:
Foreign exchange derivative contracts	$	—	$	(193)	$	—	$	(193)

Total liabilities	$	—	$	(193)	$	—	$	(193)

Schedule of Foreign Currency Forward Contracts

The following table provides information about our foreign currency forward contracts outstanding as of April 1, 2023 (in thousands):


Currency	Contract Position	Contract Amount (Local Currency)	Contract Amount (U.S. Dollars)
Euro Dollar	Buy	23,004	$	24,250
Euro Dollar	Sell	2,356	2,472
Japanese Yen	Sell	3,227,282	24,377
Korean Won	Buy	1,751,490	1,355
Taiwan Dollar	Sell	43,413	1,435

Property, Plant, and Equipment, net (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Sub-total	$ 483,883	$ 478,101
Less: Accumulated depreciation and amortization	(342,763)	(335,711)
Net, property, plant and equipment	141,120	142,390
Construction-in-process	57,112	47,458
Total	198,232	189,848
Land
Property, Plant and Equipment [Line Items]
Sub-total	17,136	17,136
Building and building improvements
Property, Plant and Equipment [Line Items]
Sub-total	44,444	44,932
Machinery and equipment
Property, Plant and Equipment [Line Items]
Sub-total	280,936	276,180
Computer equipment and software
Property, Plant and Equipment [Line Items]
Sub-total	46,568	45,813
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Sub-total	7,481	7,540
Leasehold improvements
Property, Plant and Equipment [Line Items]
Sub-total	$ 87,318	$ 86,500

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 01, 2023	Jun. 25, 2022
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 211,444	$ 212,299
Foreign currency translation	329	(1,405)
Goodwill, ending balance	211,773
Woburn
Goodwill [Roll Forward]
Goodwill, acquired during period		550
Probe Cards
Goodwill [Roll Forward]
Goodwill, beginning balance	178,424	178,424
Foreign currency translation	0	0
Goodwill, ending balance	178,424
Probe Cards \| Woburn
Goodwill [Roll Forward]
Goodwill, acquired during period		0
Systems
Goodwill [Roll Forward]
Goodwill, beginning balance	33,020	33,875
Foreign currency translation	329	(1,405)
Goodwill, ending balance	$ 33,349
Systems \| Woburn
Goodwill [Roll Forward]
Goodwill, acquired during period		$ 550

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Operating Segments and Enterprise-Wide Information - Additional Information (Details)	3 Months Ended
	Apr. 01, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Warranty

3 Months Ended

Apr. 01, 2023

Product Warranties Disclosures [Abstract]

Warranty

We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs. We regularly monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized as a component of Cost of revenues in our Condensed Consolidated Statement of Income.

Changes in our warranty liability were as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Balance at beginning of period	$	4,199	$	2,805
Accruals	1,390		1,214
Settlements	(1,717)		(1,244)
Balance at end of period	$	3,872	$	2,775

Leases - Narrative (Details)	Apr. 01, 2023
Lessee, Lease, Description [Line Items]
Operating lease, renewal term	20 years
Operating lease, weighted average remaining lease term	5 years
Operating lease, weighted average discount rate	3.92%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	6 years
Automobiles
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year

Operating Segments and Enterprise-Wide Information - Operating Results by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting Information [Line Items]
Revenues	$ 167,448	$ 197,174
Gross profit	$ 61,078	$ 94,224
Gross margin	36.50%	47.80%
Probe Cards
Segment Reporting Information [Line Items]
Revenues	$ 127,328	$ 159,983
Systems
Segment Reporting Information [Line Items]
Revenues	40,120	37,191
Operating segments \| Probe Cards
Segment Reporting Information [Line Items]
Revenues	127,328	159,983
Gross profit	$ 43,623	$ 77,202
Gross margin	34.30%	48.30%
Operating segments \| Systems
Segment Reporting Information [Line Items]
Revenues	$ 40,120	$ 37,191
Gross profit	$ 20,746	$ 19,407
Gross margin	51.70%	52.20%
Operating segments \| Corporate and Other
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 0
Gross profit	$ (3,291)	$ (2,385)
Gross margin

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

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+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Concentration of Credit and Other Risks (Tables)

3 Months Ended

Apr. 01, 2023

Risks and Uncertainties [Abstract]

Schedule of Customer Percentage of Revenue

Each of the following customers accounted for 10% or more of our revenues for the periods indicated:


	Three Months Ended
	April 1, 2023		March 26, 2022
Intel Corporation	20.0	%	20.8	%

Taiwan Semiconductor Manufacturing Co., LTD.	*		10.7	%


	20.0	%	31.5	%

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
Fiscal Year	Fiscal Year We operate on a 52/53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2023 and 2022 contain 52 weeks and 53 weeks, respectively, and the three months ended April 1, 2023 and March 26, 2022 each contained 13 weeks. Fiscal 2023 will end on December 30, 2023.
Fair Value	Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows: •Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; •Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three months ended April 1, 2023 or the year ended December 31, 2022. The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, and Accrued liabilities approximate fair value due to their short maturities. No changes were made to our valuation techniques during the first three months of fiscal 2023. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We measure and report our non-financial assets such as Property, plant and equipment, Goodwill and Intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business acquisition.

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross	$ 231,138	$ 230,725
Accumulated Amortization	206,652	203,974
Net	24,486	26,751
Existing developed technologies
Finite-Lived Intangible Assets [Line Items]
Gross	171,750	171,441
Accumulated Amortization	152,260	151,212
Net	19,490	20,229
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	50,996	50,912
Accumulated Amortization	46,559	45,003
Net	4,437	5,909
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross	7,992	7,972
Accumulated Amortization	7,833	7,759
Net	159	213
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Gross	400	400
Accumulated Amortization	0	0
Net	$ 400	$ 400

Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 9,290	$ 7,520
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,910	1,078
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,372	1,986
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 5,008	$ 4,456

Stockholders’ Equity and Stock-Based Compensation

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

Stockholders’ Equity and Stock-Based Compensation

Common Stock Repurchase Programs

On October 26, 2020, our Board of Directors authorized a two-year program to repurchase up to $50 million of outstanding common stock to offset potential dilution from issuances of common stock under our stock-based compensation programs. During the three months ended March 26, 2022, we repurchased 240,548 shares of common stock for $9.4 million. We utilized the remaining funds available for repurchase under this program during fiscal 2022.

On May 20, 2022, our Board of Directors authorized an additional program to repurchase up to $75 million of outstanding common stock, also with the primary purpose to offset potential dilution from issuances of common stock under our stock-based compensation programs. The share repurchase program will expire on May 20, 2024. During the three months ended April 1, 2023, we did not repurchase any common stock. As of April 1, 2023, $18.6 million remained available for future repurchases.

Our policy related to repurchases of our common stock is to charge the excess of cost over par value to additional paid-in capital once the shares are retired. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

Restricted Stock Units

Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows:


	Units	Weighted Average Grant Date Fair Value
RSUs at December 31, 2022	2,227,081	$	35.28
Awards granted	79,020	25.51
Awards vested	(30,751)	34.87
Awards forfeited	(82,523)	35.16
RSUs at April 1, 2023	2,192,827	34.94

Performance Restricted Stock Units

We may grant Performance RSUs (“PRSUs”) to certain executives, which vest based upon us achieving certain market performance criteria. There were no market based PRSUs granted during the three months ended April 1, 2023. PRSUs are included as part of the RSU activity above.

Employee Stock Purchase Plan

Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows:


	Three Months Ended
	April 1, 2023
Shares issued	210,055
Weighted average per share purchase price	$	23.92
Weighted average per share discount from the fair value of our common stock on the date of issuance	$	(4.22)

Stock-Based Compensation

Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Cost of revenues	$	1,910	$	1,078
Research and development	2,372		1,986
Selling, general and administrative	5,008		4,456
Total stock-based compensation	$	9,290	$	7,520

Unrecognized Compensation Costs

At April 1, 2023, the unrecognized stock-based compensation was as follows (dollars in thousands):


	Unrecognized Expense		Average Expected Recognition Period in Years
Restricted stock units	$	39,761	1.98
Performance restricted stock units	9,486		1.86
Employee stock purchase plan	985		0.33
Total unrecognized stock-based compensation expense	$	50,232	1.93

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Property, Plant, and Equipment, net

3 Months Ended

Apr. 01, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

Property, plant and equipment, net consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Land	$	17,136	$	17,136
Building and building improvements	44,444		44,932
Machinery and equipment	280,936		276,180
Computer equipment and software	46,568		45,813
Furniture and fixtures	7,481		7,540
Leasehold improvements	87,318		86,500
Sub-total	483,883		478,101
Less: Accumulated depreciation and amortization	(342,763)		(335,711)
Net, property, plant and equipment	141,120		142,390
Construction-in-process	57,112		47,458
Total	$	198,232	$	189,848

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 1,342	$ 29,872
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	7,576	6,960
Amortization	2,378	2,369
Reduction in the carrying amount of right-of-use assets	1,690	2,492
Stock-based compensation expense	9,290	7,520
Provision for excess and obsolete inventories	4,973	2,501
Other adjustments to reconcile net income to net cash provided by operating activities	133	182
Changes in assets and liabilities:
Accounts receivable	(15,926)	966
Inventories	1,375	(17,080)
Prepaid expenses and other current assets	1,009	(144)
Other assets	(55)	(73)
Accounts payable	(1,819)	10,150
Accrued liabilities	(10,209)	(3,120)
Other liabilities	319	87
Deferred revenues	(6,046)	3,908
Deferred grant	18,000		$ 0
Operating lease liabilities	(1,721)	(2,435)
Net cash provided by operating activities	12,309	44,155
Cash flows from investing activities:
Acquisition of property, plant and equipment	(19,701)	(15,606)
Purchases of marketable securities	(27,311)	(23,462)
Proceeds from maturities and sales of marketable securities	33,473	17,990
Net cash used in investing activities	(13,539)	(21,078)
Cash flows from financing activities:
Proceeds from issuances of common stock	5,024	5,687
Purchase of common stock through stock repurchase program	0	(9,397)
Tax withholdings related to net share settlements of equity awards	(387)	(72)
Principal repayments on term loans	(259)	(2,234)
Net cash provided by (used) in financing activities	4,378	(6,016)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(276)	(1,142)
Net increase in cash, cash equivalents and restricted cash	2,872	15,919
Cash, cash equivalents and restricted cash, beginning of period	112,982	155,342	155,342
Cash, cash equivalents and restricted cash, end of period	115,854	171,261	112,982
Non-cash investing and financing activities:
Decrease in accounts payable and accrued liabilities related to property, plant and equipment purchases	3,755	2,524
Operating lease, right-of-use assets obtained in exchange for lease obligations	727	3,359
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	7,391	890
Cash paid for interest	106	163
Operating cash outflows from operating leases	2,191	2,094
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	112,360	167,182	109,130
Restricted cash, current	1,207	2,026
Restricted cash, non-current	2,287	2,053
Total cash, cash equivalents and restricted cash	$ 115,854	$ 171,261	$ 112,982

Warranty (Tables)

3 Months Ended

Apr. 01, 2023

Product Warranties Disclosures [Abstract]

Schedule of Reconciliation of Changes in Warranty Liability

Changes in our warranty liability were as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Balance at beginning of period	$	4,199	$	2,805
Accruals	1,390		1,214
Settlements	(1,717)		(1,244)
Balance at end of period	$	3,872	$	2,775

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Leases [Abstract]
Operating lease expense	$ 1,952	$ 2,221
Short-term lease expense	157	40
Variable lease expense	746	458
Total lease expense	$ 2,855	$ 2,719

Net Income per Share (Tables)

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands):


	Three Months Ended
	April 1, 2023	March 26, 2022



Weighted-average shares used in computing basic net income per share	77,066	78,246
Add potentially dilutive securities	189	1,222
Weighted-average shares used in computing diluted net income per share	77,255	79,468

Securities not included as they would have been antidilutive	1,121	—

Operating Segments and Enterprise-Wide Information (Tables)

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Schedule of Operating Results by Segment

The following table summarizes the operating results by reportable segment (dollars in thousands):


	Three Months Ended
	April 1, 2023											March 26, 2022
	Probe Cards			Systems			Corporate and Other		Total			Probe Cards			Systems			Corporate and Other		Total
Revenues	$	127,328		$	40,120		$	—	$	167,448		$	159,983		$	37,191		$	—	$	197,174
Gross profit	43,623			20,746			(3,291)		61,078			77,202			19,407			(2,385)		94,224
Gross margin	34.3		%	51.7		%			36.5		%	48.3		%	52.2		%			47.8		%

Schedule of Disaggregation of Revenue by Segment

Certain revenue category information by reportable segment was as follows (in thousands):


	Three Months Ended
	April 1, 2023						March 26, 2022
	Probe Cards		Systems		Total		Probe Cards		Systems		Total
Market:
Foundry & Logic	$	101,562	$	—	$	101,562	$	114,121	$	—	$	114,121
DRAM	19,890		—		19,890		34,437		—		34,437
Flash	5,876		—		5,876		11,425		—		11,425
Systems	—		40,120		40,120		—		37,191		37,191
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174
Timing of revenue recognition:
Products transferred at a point in time	$	126,678	$	36,710	$	163,388	$	158,836	$	35,416	$	194,252
Products and services transferred over time	650		3,410		4,060		1,147		1,775		2,922
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174
Geographical region:
Taiwan	$	38,897	$	1,432	$	40,329	$	42,522	$	10,547	$	53,069
United States	24,641		13,090		37,731		19,976		5,671		25,647
China	18,476		8,623		27,099		32,791		5,608		38,399
South Korea	19,572		1,203		20,775		24,881		2,620		27,501
Malaysia	10,324		946		11,270		21,517		682		22,199
Japan	7,136		3,841		10,977		4,785		4,597		9,382
Europe	3,426		6,000		9,426		2,382		6,013		8,395
Singapore	3,200		2,140		5,340		10,284		612		10,896
Rest of the world	1,656		2,845		4,501		845		841		1,686
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174

Inventories, net

3 Months Ended

Apr. 01, 2023

Inventory Disclosure [Abstract]

Inventories, net

Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first in, first out basis) or net realizable value.

Inventories, net, consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Raw materials	$	57,748	$	55,726
Work-in-progress	39,376		46,067
Finished goods	19,429		21,364
	$	116,553	$	123,157

Fair Value and Derivative Instruments - Additional Information (Details) - USD ($)	Apr. 01, 2023	Dec. 31, 2022	Mar. 26, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on non-recurring basis	$ 176,890,000	$ 160,231,000
Liabilities measured at fair value on non-recurring basis	2,000	$ 193,000
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on non-recurring basis	0		$ 0
Liabilities measured at fair value on non-recurring basis	$ 0		$ 0

Stockholders’ Equity and Stock-Based Compensation - ESPP Activity (Details) - Employee stock purchase plan	3 Months Ended
	Apr. 01, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) \| shares	210,055
Weighted average per share purchase price (in dollars per share)	$ 23.92
Weighted average per share discount from the fair value of our common stock on the date of issuance (in dollars per share)	$ (4.22)

Restructuring Charges - Changes to the Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Restructuring Reserve [Roll Forward]
Accrual at beginning of period	$ 1,249
Restructuring charges	1,217	$ 313
Cash payments	(1,778)
Non-cash settlement	(312)
Accrual at end of period	376
Employee Severance and Benefits
Restructuring Reserve [Roll Forward]
Accrual at beginning of period	1,249
Restructuring charges	842
Cash payments	(1,715)
Non-cash settlement	0
Accrual at end of period	376
Stock-based Compensation
Restructuring Reserve [Roll Forward]
Accrual at beginning of period	0
Restructuring charges	295
Cash payments	0
Non-cash settlement	(295)
Accrual at end of period	0
Inventory Impairments & Other Inventory Related Costs
Restructuring Reserve [Roll Forward]
Accrual at beginning of period	0
Restructuring charges	80
Cash payments	(63)
Non-cash settlement	(17)
Accrual at end of period	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 1,342	$ 29,872
Other comprehensive income (loss), net of tax:
Translation adjustments	832	(2,698)
Unrealized gains (losses) on available-for-sale marketable securities	603	(1,204)
Unrealized gains (losses) on derivative instruments	(43)	874
Other comprehensive income (loss), net of tax:	1,392	(3,028)
Comprehensive income	$ 2,734	$ 26,844

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Revenue	3 Months Ended
Revenue	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Transaction price allocated to the remaining performance obligations: On April 1, 2023, we had $9.8 million of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts and contracts with overtime revenue recognition that are not yet delivered. We expect to recognize approximately 67.6% of our remaining performance obligations as revenue in the remainder of fiscal 2023, approximately 26.8% in fiscal 2024, and approximately 5.6% in fiscal 2025 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation. Contract balances: The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded at the invoiced amount, net of an allowance for credit losses. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional. A contract asset is recorded when we have performed under the contract but our right to consideration is conditional on something other than the passage of time. Contract assets as of April 1, 2023 and December 31, 2022 were $2.9 million and $1.9 million, respectively, and are reported on the Condensed Consolidated Balance Sheets as a component of Prepaid expenses and other current assets. Contract liabilities include payments received and payments due in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the Condensed Consolidated Balance Sheets at the end of each reporting period as a component of Deferred revenue and Other liabilities. Contract liabilities as of April 1, 2023 and December 31, 2022 were $24.9 million and $30.9 million, respectively. During the three months ended April 1, 2023, we recognized $14.0 million of revenue that was included in contract liabilities as of December 31, 2022. Costs to obtain a contract: We generally expense sales commissions when incurred as a component of Selling, general and administrative expense, as the amortization period is typically less than one year. Revenue by category: Refer to Note 15, Operating Segments and Enterprise-Wide Information, for further details.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Restructuring Charges

3 Months Ended

Apr. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring Charges

2022 Restructuring Plan

On October 25, 2022, we adopted a restructuring plan (“2022 restructuring plan”) to align our cost structure with reduced demand levels, by streamlining and improving the efficiency and business effectiveness of our operations. This plan included lowering headcount by approximately 13% of our workforce.

The Company has recognized 2022 restructuring plan charges of approximately $8.1 million for severance and employee-related costs, including $0.3 million for stock-based compensation, with $7.1 million within the Probe Cards segment, $0.5 million within the Systems segment, and $0.5 million within Corporate. We do not expect to incur additional material costs related to the 2022 restructuring plan.

2021 Restructuring Plan

On September 25, 2021, we adopted restructuring plans (“2021 restructuring plans”) to improve our business effectiveness and streamline our operations by consolidating certain manufacturing facilities for both the Probe Cards segment and the Systems segment. This included plans to consolidate or relocate certain leased locations in the United States to other locations in the United States, Germany and Asia. As a result of these changes to certain work locations, we have incurred personnel related costs to sever, relocate, or retain select employees. Additionally, as part of these plans we have undertaken actions to adjust capacity for certain product offerings, which included contract termination costs to satisfy contract obligations.

The Company has recognized 2021 restructuring plans charges of approximately $12.7 million, with $9.9 million within the Probe Cards segment and $2.8 million within the Systems segment, and were comprised of $1.3 million of severance and employee-related costs, $1.8 million in contract and lease termination costs, $9.1 million in inventory impairments and other inventory related costs, and $0.5 million of cost related to impairment of leasehold improvements, facility exits and fixed asset related costs. We do not expect additional material costs related to the 2021 restructuring plan.

Total restructuring charges for both the 2022 and 2021 restructuring plans included in our Condensed Consolidated Statements of Income were as follows (in thousands):


	Three Months Ended
	April 1, 2023						March 26, 2022
	Probe Cards		Systems		Total		Probe Cards		Systems		Total
Cost of revenues	$	70	$	(45)	$	25	$	39	$	100	$	139
Research and development	4		66		70		—		146		146
Selling, general and administrative	1,060		62		1,122		3		25		28
	$	1,134	$	83	$	1,217	$	42	$	271	$	313

Changes to the restructuring accrual in the three months ended April 1, 2023 were as follows (in thousands):


	Employee Severance and Benefits		Stock-based Compensation		Inventory Impairments & Other Inventory Related Costs		Total
December 31, 2022	$	1,249	$	—	$	—	$	1,249
Restructuring charges	842		295		80		1,217
Cash payments	(1,715)		—		(63)		(1,778)

Non-cash settlement	—		(295)		(17)		(312)
April 1, 2023	$	376	$	—	$	—	$	376

Inventories, net (Tables)

3 Months Ended

Apr. 01, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory Components

Inventories, net, consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Raw materials	$	57,748	$	55,726
Work-in-progress	39,376		46,067
Finished goods	19,429		21,364
	$	116,553	$	123,157

Fair Value and Derivative Instruments - Fair Value Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 49,252	$ 27,244
Marketable securities	123,891	129,006
Total assets	176,890	160,231
Total liabilities	(2)	(193)
Foreign exchange derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	763	664
Derivative liability		(193)
Promissory note receivable \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	943	943
Interest rate swap derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	2,041	2,374
Derivative liability	(2)
Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	44,777	21,279
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	4,475	4,969
Marketable securities	31,315
Commercial paper \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities		24,840
Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	53,899	67,396
U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	25,144	25,019
Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	471	706
U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		996
Marketable securities	13,062	11,045
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	44,777	21,279
Marketable securities	25,144	25,019
Total assets	69,921	46,298
Total liabilities	0	0
Level 1 \| Foreign exchange derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Derivative liability		0
Level 1 \| Promissory note receivable \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Level 1 \| Interest rate swap derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Derivative liability	0
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	44,777	21,279
Level 1 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Marketable securities	0
Level 1 \| Commercial paper \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities		0
Level 1 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 1 \| U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	25,144	25,019
Level 1 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 1 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		0
Marketable securities	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	4,475	5,965
Marketable securities	98,747	103,987
Total assets	106,026	112,990
Total liabilities	(2)	(193)
Level 2 \| Foreign exchange derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	763	664
Derivative liability		(193)
Level 2 \| Promissory note receivable \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Level 2 \| Interest rate swap derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	2,041	2,374
Derivative liability	(2)
Level 2 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 2 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	4,475	4,969
Marketable securities	31,315
Level 2 \| Commercial paper \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities		24,840
Level 2 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	53,899	67,396
Level 2 \| U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 2 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	471	706
Level 2 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		996
Marketable securities	13,062	11,045
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Total assets	943	943
Total liabilities	0	0
Level 3 \| Foreign exchange derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Derivative liability		0
Level 3 \| Promissory note receivable \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	943	943
Level 3 \| Interest rate swap derivative contracts \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative contracts	0	0
Derivative liability	0
Level 3 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 3 \| Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Marketable securities	0
Level 3 \| Commercial paper \| Designated as hedging instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities		0
Level 3 \| Corporate bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 3 \| U.S. treasuries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 3 \| Certificates of deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	0	0
Level 3 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		0
Marketable securities	$ 0	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 25, 2021		78,240,506
Beginning balance at Dec. 25, 2021	$ 815,780	$ 78	$ 898,945	$ (1,449)	$ (81,794)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		157,642
Issuance of common stock under the Employee Stock Purchase Plan	5,645		5,645
Issuance of common stock pursuant to exercise of options (in shares)		6,000
Issuance of common stock pursuant to exercise of options	42		42
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares)		2,612
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(72)		(72)
Purchase of common stock retired through repurchase program (in shares)		240,548
Purchase and retirement of common stock through repurchase program	(9,397)		(9,397)
Stock-based compensation	7,831		7,831
Other comprehensive income (loss)	(3,028)			(3,028)
Net income	29,872				29,872
Ending balance (in shares) at Mar. 26, 2022		78,166,212
Ending balance at Mar. 26, 2022	$ 846,673	$ 78	902,994	(4,477)	(51,922)
Beginning balance (in shares) at Dec. 31, 2022	76,914,590	76,914,590
Beginning balance at Dec. 31, 2022	$ 808,285	$ 77	844,842	(5,578)	(31,056)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the Employee Stock Purchase Plan (in shares)		210,055
Issuance of common stock under the Employee Stock Purchase Plan	5,024		5,024
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax (in shares)		17,378
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax	(387)		(387)
Stock-based compensation	8,716		8,716
Other comprehensive income (loss)	1,392			1,392
Net income	$ 1,342				1,342
Ending balance (in shares) at Apr. 01, 2023	77,142,023	77,142,023
Ending balance at Apr. 01, 2023	$ 824,372	$ 77	$ 858,195	$ (4,186)	$ (29,714)

Fair Value and Derivative Instruments - Foreign Currency Forward Contracts (Details) - Apr. 01, 2023 - Foreign Exchange Forward € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands	USD ($)	EUR (€)	JPY (¥)	KRW (₩)	TWD ($)
Buy \| Euro Dollar
Derivative [Line Items]
Derivative, notional amount	$ 24,250	€ 23,004
Buy \| Korean Won
Derivative [Line Items]
Derivative, notional amount	1,355			₩ 1,751,490
Sell \| Euro Dollar
Derivative [Line Items]
Derivative, notional amount	2,472	€ 2,356
Sell \| Japanese Yen
Derivative [Line Items]
Derivative, notional amount	24,377		¥ 3,227,282
Sell \| Taiwan Dollar
Derivative [Line Items]
Derivative, notional amount	$ 1,435				$ 43,413

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Fiscal Year We operate on a 52/53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2023 and 2022 contain 52 weeks and 53 weeks, respectively, and the three months ended April 1, 2023 and March 26, 2022 each contained 13 weeks. Fiscal 2023 will end on December 30, 2023. Significant Accounting Policies Our significant accounting policies have not changed during the three months ended April 1, 2023 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, except for: Government Assistance In January 2023, we received $18.0 million in cash from a California Competes Grant (the “Grant”) awarded from the California Governor’s Office of Business and Economic Development. The Grant requires FormFactor to create and maintain full-time jobs and make significant infrastructure investments within California over a 5-year term. If we do not meet the requirements of the Grant, we will be required to repay all or a portion of the Grant. The Grant is included in our Condensed Consolidated Balance Sheets within Deferred grant and we have elected to recognize when earned as an offset to Cost of revenues and Operating expenses within our Condensed Consolidated Statements of Income. We have elected to present the proceeds from the Grant as cash provided by operating activities within our Condensed Consolidated Statements of Cash Flows as the grant is to offset operations.

Fair Value and Derivative Instruments

3 Months Ended

Apr. 01, 2023

Fair Value Disclosures [Abstract]

Fair Value and Derivative Instruments

Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows:

•Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities;

•Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.

We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three months ended April 1, 2023 or the year ended December 31, 2022.

The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, and Accrued liabilities approximate fair value due to their short maturities.

No changes were made to our valuation techniques during the first three months of fiscal 2023.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


April 1, 2023	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	44,777	$	—	$	—	$	44,777
Commercial paper	—		4,475		—		4,475



	44,777		4,475		—		49,252
Marketable securities:
U.S. treasuries	25,144		—		—		25,144
Certificates of deposit	—		471		—		471
U.S. agency securities	—		13,062		—		13,062
Corporate bonds	—		53,899		—		53,899
Commercial paper	—		31,315		—		31,315
	25,144		98,747		—		123,891
Foreign exchange derivative contracts	—		763		—		763
Promissory note receivable	—		—		943		943
Interest rate swap derivative contracts	—		2,041		—		2,041
Total assets	$	69,921	$	106,026	$	943	$	176,890
Liabilities:

Interest rate swap derivative contracts	$	—	$	(2)	$	—	$	(2)

Total liabilities	$	—	$	(2)	$	—	$	(2)


December 31, 2022	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	21,279	$	—	$	—	$	21,279
Commercial paper	—		4,969		—		4,969

U.S. agency securities	—		996		—		996
	21,279		5,965		—		27,244
Marketable securities:
U.S. treasuries	25,019		—		—		25,019
Certificates of deposit	—		706		—		706
U.S. agency securities	—		11,045		—		11,045
Corporate bonds	—		67,396		—		67,396
Commercial paper	—		24,840		—		24,840
	25,019		103,987		—		129,006
Foreign exchange derivative contracts	—		664		—		664
Promissory note receivable	—		—		943		943
Interest rate swap derivative contracts	—		2,374		—		2,374
Total assets	$	46,298	$	112,990	$	943	$	160,231
Liabilities:
Foreign exchange derivative contracts	$	—	$	(193)	$	—	$	(193)

Total liabilities	$	—	$	(193)	$	—	$	(193)

Cash Equivalents

The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities.

Marketable Securities

We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are

priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all investments have a sufficient trading volume to demonstrate that the fair value is appropriate.

Unrealized gains and losses were immaterial and were recorded as a component of Accumulated other comprehensive loss in our Condensed Consolidated Balance Sheets. We did not have any other-than-temporary unrealized gains or losses at either period end included in these financial statements.

Interest Rate Swaps

The fair value of our interest rate swap contracts is determined at the end of each reporting period based on valuation models that use interest rate yield curves as inputs. For accounting purposes, our interest rate swap contracts qualify for, and are designated as, cash flow hedges. The cash flows associated with the interest rate swaps are reported in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows and the fair value of the interest rate swap contracts are recorded within Prepaid expenses and other current assets and Other assets in our Condensed Consolidated Balance Sheets.

Foreign Exchange Derivative Contracts

We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities and forecasted foreign currency revenue and expense transactions. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with foreign currency transaction gains or losses.

We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, certain of our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded within Other income, net in our Condensed Consolidated Statement of Income for both realized and unrealized gains and losses. Certain of our foreign currency forward contracts are designated as cash flow hedges, and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our Condensed Consolidated Balance Sheets with changes in fair value recorded as a component of Accumulated other comprehensive loss and reclassified into earnings in the same period in which the hedged transaction affects earnings, and in the same line item on the Condensed Consolidated Statements of Income as the impact of the hedge transaction.

The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All of our foreign exchange derivative contracts outstanding at April 1, 2023 will mature by the first quarter of fiscal 2024.

The following table provides information about our foreign currency forward contracts outstanding as of April 1, 2023 (in thousands):


Currency	Contract Position	Contract Amount (Local Currency)	Contract Amount (U.S. Dollars)
Euro Dollar	Buy	23,004	$	24,250
Euro Dollar	Sell	2,356	2,472
Japanese Yen	Sell	3,227,282	24,377
Korean Won	Buy	1,751,490	1,355
Taiwan Dollar	Sell	43,413	1,435

Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We measure and report our non-financial assets such as Property, plant and equipment, Goodwill and Intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business

acquisition. Other than as discussed in Note 6, Restructuring Charges, there were no assets or liabilities measured at fair value on a nonrecurring basis during the three months ended April 1, 2023 or March 26, 2022.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations	$ 9.8
Contract assets	2.9	$ 1.9
Contract with customer, liability	24.9	$ 30.9
Revenue recognized included in contracts	$ 14.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	67.60%
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	26.80%
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	5.60%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Net Income per Share

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

Net Income per Share

The following table reconciles the shares used in calculating basic net income per share and diluted net income per share (in thousands):


	Three Months Ended
	April 1, 2023	March 26, 2022



Weighted-average shares used in computing basic net income per share	77,066	78,246
Add potentially dilutive securities	189	1,222
Weighted-average shares used in computing diluted net income per share	77,255	79,468

Securities not included as they would have been antidilutive	1,121	—

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 169	$ 168
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	77,142,023	76,914,590
Common stock, shares outstanding (in shares)	77,142,023	76,914,590

Stockholders’ Equity and Stock-Based Compensation (Tables)

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

Schedule of Restricted Stock Unit Activity

Restricted stock unit (“RSU”) activity under our equity incentive plan was as follows:


	Units	Weighted Average Grant Date Fair Value
RSUs at December 31, 2022	2,227,081	$	35.28
Awards granted	79,020	25.51
Awards vested	(30,751)	34.87
Awards forfeited	(82,523)	35.16
RSUs at April 1, 2023	2,192,827	34.94

Schedule of ESPP Activity

Information related to activity under our Employee Stock Purchase Plan (“ESPP”) was as follows:


	Three Months Ended
	April 1, 2023
Shares issued	210,055
Weighted average per share purchase price	$	23.92
Weighted average per share discount from the fair value of our common stock on the date of issuance	$	(4.22)

Schedule of Stock-based Compensation

Stock-based compensation was included in our Condensed Consolidated Statements of Income as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Cost of revenues	$	1,910	$	1,078
Research and development	2,372		1,986
Selling, general and administrative	5,008		4,456
Total stock-based compensation	$	9,290	$	7,520

Schedule of Unrecognized Stock-based Compensation

At April 1, 2023, the unrecognized stock-based compensation was as follows (dollars in thousands):


	Unrecognized Expense		Average Expected Recognition Period in Years
Restricted stock units	$	39,761	1.98
Performance restricted stock units	9,486		1.86
Employee stock purchase plan	985		0.33
Total unrecognized stock-based compensation expense	$	50,232	1.93

Goodwill and Intangible Assets - Additional information (Details)	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, impairment loss	$ 0

Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		5 Months Ended	18 Months Ended
	Oct. 25, 2022	Apr. 01, 2023	Mar. 26, 2022	Apr. 01, 2023	Apr. 01, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 1,217	$ 313
Stock-based Compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges		295
Employee Severance and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges		842
Inventory Impairments & Other Inventory Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		80
Probe Cards
Restructuring Cost and Reserve [Line Items]
Restructuring charges		1,134	42
Systems
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 83	$ 271
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Percent of workforce eliminated	13.00%
Restructuring charges				$ 8,100
2022 Restructuring Plan \| Stock-based Compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges				300
2022 Restructuring Plan \| Corporate, Non-Segment
Restructuring Cost and Reserve [Line Items]
Restructuring charges				500
2022 Restructuring Plan \| Probe Cards
Restructuring Cost and Reserve [Line Items]
Restructuring charges				7,100
2022 Restructuring Plan \| Systems
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 500
2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges					$ 12,700
2021 Restructuring Plan \| Employee Severance and Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges					1,300
2021 Restructuring Plan \| Contract Termination & Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges					1,800
2021 Restructuring Plan \| Inventory Impairments & Other Inventory Related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges					9,100
2021 Restructuring Plan \| Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges					500
2021 Restructuring Plan \| Probe Cards
Restructuring Cost and Reserve [Line Items]
Restructuring charges					9,900
2021 Restructuring Plan \| Systems
Restructuring Cost and Reserve [Line Items]
Restructuring charges					$ 2,800

Goodwill and Intangible Assets (Tables)

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill by Reportable Segments

Goodwill by reportable segment was as follows (in thousands):


	Probe Cards		Systems		Total
Goodwill, as of December 25, 2021	$	178,424	$	33,875	$	212,299


Addition - Woburn Acquisition	—		550		550
Foreign currency translation	—		(1,405)		(1,405)
Goodwill, as of December 31, 2022	178,424		33,020		211,444


Foreign currency translation	—		329		329
Goodwill, as of April 1, 2023	$	178,424	$	33,349	$	211,773

Schedule of Intangible Assets

Intangible assets were as follows (in thousands):


	April 1, 2023						December 31, 2022
Intangible Assets	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Existing developed technologies	$	171,750	$	152,260	$	19,490	$	171,441	$	151,212	$	20,229
Customer relationships	50,996		46,559		4,437		50,912		45,003		5,909
Trade name	7,992		7,833		159		7,972		7,759		213

In-process research and development	400		—		400		400		—		400
	$	231,138	$	206,652	$	24,486	$	230,725	$	203,974	$	26,751

Schedule of Amortization Expense

Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Cost of revenues	$	831	$	808
Selling, general and administrative	1,547		1,561
	$	2,378	$	2,369

Schedule of Estimated Amortization of Intangible Assets

The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands):


Fiscal Year	Amount
Remainder of 2023	$	4,813
2024	4,611
2025	4,268
2026	3,175
2027	2,832
Thereafter	4,387
	$	24,086

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
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-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (f)
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Net Income per Share (Details) - shares shares in Thousands	3 Months Ended
Net Income per Share (Details) - shares shares in Thousands	Apr. 01, 2023	Mar. 26, 2022
Earnings Per Share [Abstract]
Weighted-average shares used in computing basic net income per share (in shares)	77,066	78,246
Add potentially dilutive securities (in shares)	189	1,222
Weighted-average shares used in computing diluted net income per share (in shares)	77,255	79,468
Securities not included as they would have been antidilutive (in shares)	1,121	0

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases See Note 13, Leases. Contractual Obligations and Commitments Our contractual obligations and commitments have not materially changed as of April 1, 2023 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. As of April 1, 2023, and as of the filing of this Quarterly Report on Form 10-Q, we were not involved in any material legal proceedings.

Goodwill and Intangible Assets

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill by reportable segment was as follows (in thousands):


	Probe Cards		Systems		Total
Goodwill, as of December 25, 2021	$	178,424	$	33,875	$	212,299


Addition - Woburn Acquisition	—		550		550
Foreign currency translation	—		(1,405)		(1,405)
Goodwill, as of December 31, 2022	178,424		33,020		211,444


Foreign currency translation	—		329		329
Goodwill, as of April 1, 2023	$	178,424	$	33,349	$	211,773

We have not recorded goodwill impairments for the three months ended April 1, 2023.

Intangible assets were as follows (in thousands):


	April 1, 2023						December 31, 2022
Intangible Assets	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Existing developed technologies	$	171,750	$	152,260	$	19,490	$	171,441	$	151,212	$	20,229
Customer relationships	50,996		46,559		4,437		50,912		45,003		5,909
Trade name	7,992		7,833		159		7,972		7,759		213

In-process research and development	400		—		400		400		—		400
	$	231,138	$	206,652	$	24,486	$	230,725	$	203,974	$	26,751

Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Cost of revenues	$	831	$	808
Selling, general and administrative	1,547		1,561
	$	2,378	$	2,369

The estimated future amortization of definite-lived intangible assets, excluding in-process research and development, is as follows (in thousands):


Fiscal Year	Amount
Remainder of 2023	$	4,813
2024	4,611
2025	4,268
2026	3,175
2027	2,832
Thereafter	4,387
	$	24,086

Stockholders’ Equity and Stock-Based Compensation - Unrecognized Compensation Costs (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 50,232
Average Expected Recognition Period in Years	1 year 11 months 4 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 39,761
Average Expected Recognition Period in Years	1 year 11 months 23 days
Performance restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 9,486
Average Expected Recognition Period in Years	1 year 10 months 9 days
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 985
Average Expected Recognition Period in Years	3 months 29 days

Operating Segments and Enterprise-Wide Information

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Operating Segments and Enterprise-Wide Information

Operating Segments and Enterprise-Wide InformationOur chief operating decision maker (“CODM”) is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. We operate in two reportable segments consisting

of the Probe Cards segment and the Systems segment. The following table summarizes the operating results by reportable segment (dollars in thousands):


	Three Months Ended
	April 1, 2023											March 26, 2022
	Probe Cards			Systems			Corporate and Other		Total			Probe Cards			Systems			Corporate and Other		Total
Revenues	$	127,328		$	40,120		$	—	$	167,448		$	159,983		$	37,191		$	—	$	197,174
Gross profit	43,623			20,746			(3,291)		61,078			77,202			19,407			(2,385)		94,224
Gross margin	34.3		%	51.7		%			36.5		%	48.3		%	52.2		%			47.8		%

Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures.

Corporate and Other includes unallocated expenses relating to amortization of intangible assets, inventory and fixed asset fair value adjustments due to acquisitions, share-based compensation, and restructuring charges which are not used in evaluating the results of, or in allocating resources to, our reportable segments.

Certain revenue category information by reportable segment was as follows (in thousands):


	Three Months Ended
	April 1, 2023						March 26, 2022
	Probe Cards		Systems		Total		Probe Cards		Systems		Total
Market:
Foundry & Logic	$	101,562	$	—	$	101,562	$	114,121	$	—	$	114,121
DRAM	19,890		—		19,890		34,437		—		34,437
Flash	5,876		—		5,876		11,425		—		11,425
Systems	—		40,120		40,120		—		37,191		37,191
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174
Timing of revenue recognition:
Products transferred at a point in time	$	126,678	$	36,710	$	163,388	$	158,836	$	35,416	$	194,252
Products and services transferred over time	650		3,410		4,060		1,147		1,775		2,922
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174
Geographical region:
Taiwan	$	38,897	$	1,432	$	40,329	$	42,522	$	10,547	$	53,069
United States	24,641		13,090		37,731		19,976		5,671		25,647
China	18,476		8,623		27,099		32,791		5,608		38,399
South Korea	19,572		1,203		20,775		24,881		2,620		27,501
Malaysia	10,324		946		11,270		21,517		682		22,199
Japan	7,136		3,841		10,977		4,785		4,597		9,382
Europe	3,426		6,000		9,426		2,382		6,013		8,395
Singapore	3,200		2,140		5,340		10,284		612		10,896
Rest of the world	1,656		2,845		4,501		845		841		1,686
Total	$	127,328	$	40,120	$	167,448	$	159,983	$	37,191	$	197,174

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Property, Plant, and Equipment, net (Tables)

3 Months Ended

Apr. 01, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Land	$	17,136	$	17,136
Building and building improvements	44,444		44,932
Machinery and equipment	280,936		276,180
Computer equipment and software	46,568		45,813
Furniture and fixtures	7,481		7,540
Leasehold improvements	87,318		86,500
Sub-total	483,883		478,101
Less: Accumulated depreciation and amortization	(342,763)		(335,711)
Net, property, plant and equipment	141,120		142,390
Construction-in-process	57,112		47,458
Total	$	198,232	$	189,848

Leases (Tables)

3 Months Ended

Apr. 01, 2023

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Lease expense:
Operating lease expense	$	1,952	$	2,221
Short-term lease expense	157		40
Variable lease expense	746		458
	$	2,855	$	2,719

Schedule of Future Minimum Payments Under Leases

Future minimum payments under our non-cancelable operating leases were as follows as of April 1, 2023 (in thousands):


Fiscal Year	Amount
Remainder of 2023	$	6,190
2024	8,106
2025	8,018
2026	6,641
2027	5,756
Thereafter	3,431
Total minimum lease payments	38,142
Less: interest	(4,223)
Present value of net minimum lease payments	33,919
Less: current portion	(7,512)
Total long-term operating lease liabilities	$	26,407

Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
Warranty (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Mar. 26, 2022
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 4,199	$ 2,805
Accruals	1,390	1,214
Settlements	(1,717)	(1,244)
Balance at end of period	$ 3,872	$ 2,775

Concentration of Credit and Other Risks (Details) - Customer Concentration Risk	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Revenue Benchmark \| Two Major Customers
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%
Revenue from Contract with Customer Benchmark \| Intel Corporation
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	20.80%
Revenue from Contract with Customer Benchmark \| Taiwan Semiconductor Manufacturing Co., LTD.
Concentration Risk [Line Items]
Concentration risk percentage		10.70%
Revenue from Contract with Customer Benchmark \| Customers Representing 10% or More of Total Revenues
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	31.50%
Accounts Receivable \| Major Customer 1
Concentration Risk [Line Items]
Concentration risk percentage	17.90%		13.80%
Accounts Receivable \| Major Customer 2
Concentration Risk [Line Items]
Concentration risk percentage	15.90%

Accrued Liabilities

3 Months Ended

Apr. 01, 2023

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Accrued compensation and benefits	$	20,028	$	15,864
Accrued income and other taxes	3,241		12,817
Accrued warranty	3,872		4,199
Employee stock purchase plan contributions withheld	1,533		4,585
Accrued restructuring charges	376		1,249
Other accrued expenses	2,931		3,401
	$	31,981	$	42,115

Inventories, net (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 57,748	$ 55,726
Work-in-progress	39,376	46,067
Finished goods	19,429	21,364
Inventories	$ 116,553	$ 123,157

Concentration of Credit and Other Risks

3 Months Ended

Apr. 01, 2023

Risks and Uncertainties [Abstract]

Concentration of Credit and Other Risks

Each of the following customers accounted for 10% or more of our revenues for the periods indicated:


	Three Months Ended
	April 1, 2023		March 26, 2022
Intel Corporation	20.0	%	20.8	%

Taiwan Semiconductor Manufacturing Co., LTD.	*		10.7	%


	20.0	%	31.5	%

At April 1, 2023, two customers accounted for 17.9% and 15.9% of gross accounts receivable, respectively. At December 31, 2022, one customer accounted for 13.8% of gross accounts receivable.

Accrued Liabilities (Tables)

3 Months Ended

Apr. 01, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	April 1, 2023		December 31, 2022
Accrued compensation and benefits	$	20,028	$	15,864
Accrued income and other taxes	3,241		12,817
Accrued warranty	3,872		4,199
Employee stock purchase plan contributions withheld	1,533		4,585
Accrued restructuring charges	376		1,249
Other accrued expenses	2,931		3,401
	$	31,981	$	42,115

Restructuring Charges - Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,217	$ 313
Cost of revenues
Restructuring Cost and Reserve [Line Items]
Restructuring charges	25	139
Research and development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	70	146
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,122	28
Probe Cards
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,134	42
Probe Cards \| Cost of revenues
Restructuring Cost and Reserve [Line Items]
Restructuring charges	70	39
Probe Cards \| Research and development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4	0
Probe Cards \| Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,060	3
Systems
Restructuring Cost and Reserve [Line Items]
Restructuring charges	83	271
Systems \| Cost of revenues
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(45)	100
Systems \| Research and development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	66	146
Systems \| Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 62	$ 25

Leases

3 Months Ended

Apr. 01, 2023

Leases [Abstract]

Leases

We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space, as well as for a portion of our corporate headquarters located in Livermore, California. Our leases have remaining terms of 1 to 6 years, and some leases include options to extend up to 20 years. We also have operating leases for automobiles with remaining lease terms of 1 year. We did not include any of our renewal options in our lease terms for calculating our lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time. The weighted-average remaining lease term for our operating leases was 5 years as of April 1, 2023 and the weighted-average discount rate was 3.92%.

The components of lease expense were as follows (in thousands):


	Three Months Ended
	April 1, 2023		March 26, 2022
Lease expense:
Operating lease expense	$	1,952	$	2,221
Short-term lease expense	157		40
Variable lease expense	746		458
	$	2,855	$	2,719

Future minimum payments under our non-cancelable operating leases were as follows as of April 1, 2023 (in thousands):


Fiscal Year	Amount
Remainder of 2023	$	6,190
2024	8,106
2025	8,018
2026	6,641
2027	5,756
Thereafter	3,431
Total minimum lease payments	38,142
Less: interest	(4,223)
Present value of net minimum lease payments	33,919
Less: current portion	(7,512)
Total long-term operating lease liabilities	$	26,407

Leases - Schedule of Future Minimum Payments Under Leases (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Leases [Abstract]
Remainder of 2023	$ 6,190
2024	8,106
2025	8,018
2026	6,641
2027	5,756
Thereafter	3,431
Total minimum lease payments	38,142
Less: interest	(4,223)
Present value of net minimum lease payments	33,919
Less: current portion	(7,512)	$ (7,353)
Total long-term operating lease liabilities	$ 26,407	$ 27,587

Stockholders’ Equity and Stock-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	May 20, 2022	Oct. 26, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of common stock value retired through repurchase program		$ 9,397,000
Common Stock \| October 2020 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program authorized amount				$ 50,000,000
Purchase of common stock retired through repurchase program (in shares)		240,548
Purchase of common stock value retired through repurchase program		$ 9,400,000
Common Stock \| May 2022 Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program authorized amount			$ 75,000,000
Purchase of common stock retired through repurchase program (in shares)	0
Amount remaining for future repurchases	$ 18,600,000