What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-05-06 · 104 added, 57 removed, 420 unchanged (28% of the section changed)

4 unchanged sentences

Three months ended

Six months ended

Total revenue

22 unchanged sentences

Three months ended

Six months ended

Other comprehensive income (loss):

1 unchanged sentence

Amortization of actuarial net gain and other adjustments from pension plan, net of tax

Unrealized gains on available-for-sale investments

Unrealized (losses) gains on available-for-sale investments

Total other comprehensive income (loss)

17 unchanged sentences

Deferred income taxes

Long-term investments

LIABILITIES AND STOCKHOLDERS’ EQUITY

13 unchanged sentences

Common stock, $ 0.001 par value, 75,000 shares authorized;

32,129 shares issued and outstanding at March 31, 2025;

31,418 shares issued and outstanding at June 30, 2025;

32,365 shares issued and outstanding at December 31, 2024

17 unchanged sentences

Balance at March 31, 2024

Foreign currency translation adjustments

Change in pension obligation

Issuance of stock under Employee Stock Purchase Plan

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at June 30, 2024

Comprehensive

7 unchanged sentences

Balance at March 31, 2025

Foreign currency translation adjustments

Unrealized losses on available-for-sale investments

Issuance of stock under Employee Stock Purchase Plan

Issuance of common stock on restricted stock units, net of shares withheld

Stock-based compensation expense

Repurchase of common stock

Balance at June 30, 2025

See accompanying Notes to these Consolidated Financial Statements (Unaudited)

2 unchanged sentences

(In thousands)

Three months ended

Six months ended

Cash flows from operating activities

5 unchanged sentences

Provision for excess and obsolete inventory

Accretion of discounts and premiums on marketable securities

Accretion of discounts and premiums on short-term and long-term investments

Unrealized currency (gain) loss on foreign denominated transactions

9 unchanged sentences

Expenditures for property, plant and equipment and capitalized software

Purchase of short-term investments

Purchases of short-term and long-term investments

Maturities and sales of short-term investments

3 unchanged sentences

Repurchase of common stock

Proceeds from Employee Stock Purchase Plan purchases

Principal payments on finance lease obligation

17 unchanged sentences

The balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.

As of March 31, 2025, there have been no material changes in the Company’s significant accounting policies, other than as described in Note 2 below.

As of June 30, 2025, there have been no material changes in the Company’s significant accounting policies, other than as described in Note 2 below.

For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”).

Significant Accounting Policies

Cash, Cash Equivalents and Short-term Investments

Cash, Cash Equivalents, Short-term Investments, and Long-term Investments

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of 90 days or less.

2 unchanged sentences

Cash equivalents are carried on the balance sheet at fair market value.

Short-term investments are h ighly liquid investments with original maturities of greater than 90 days but less than one year from date of purchase and are carried on the balance sheet at fair value.

We evaluate if a ny declines in fair value below amortized cost are caused by expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs.

Our short-term investments consist primarily of U.S.

government and agency securities.

As of March 31, 2025, our short-term investments are classified as available-for-sale as a result of the below noted sale of securities.

Short-term investments are h ighly liquid investments, primarily consisting of U.S.

government and agency securities, with original maturities of greater than 90 days but less than one year from date of purchase.

Long-term investments consist of U.S.

government and agency securities with original maturities greater than one year from the date of purchase.

Beginning as of March 31, 2025, both our short-term and long-term investments are classified as available-for-sale as a result of the below noted sale of securities.

In prior periods, our short-term investments were classified as held-to-maturity.

Any unrealized gains and losses are included in accumulated other comprehensive loss in the Consolidated Statement of Stockholder’s Equity.

We classify our long-term investments as non-current based on the security’s contractual maturity.

We evaluate if a ny declines in fair value below amortized cost are caused by expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs.

Any unrealized gains and losses are included in accumulated other comprehensive loss in the Consolidated Statement of Stockholders’ Equity.

Income related to these securities is recorded in interest income in the Consolidated Statements of Operations .

As of March 31, 2025, the amortized cost and fair value of the available-for-sale investments was $ 403.0 million and $ 403.1 million, respectively.

As of March 31, 2025, we had no allowances for credit loss.

As of June 30, 2025, the amortized cost and fair value of the available-for-sale short-term investments was $ 376.3 million and $ 376.2 million, respectively.

As of June 30, 2025, the amortized cost and fair value of the long-term investments was $ 31.0 million and $ 31.1 million, respectively.

As of June 30, 2025, we had no allowances for credit loss on our investments.

In February 2025, we sold securities classified as held-to-maturity with a total net carrying value of $ 199.5 million.

The majority of the proceeds were reinvested back into short-term investments as of March 31, 2025.

The majority of the proceeds were reinvested back into short-term investments during the three months ended March 31, 2025.

Due to this sale, the remaining held-to-maturity securities were reclassified as available-for-sale, resulting in a remeasurement increase in short-term investments for balance sheet presentation purposes with a corresponding adjustment to accumulated other comprehensive loss of $ 81.0 thousand as of March 31, 2025.

3 unchanged sentences

The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our 2024 Form 10-K.

We recognized stock-based compensation expense of $ 4.9 million and $ 4.7 million for the three-month periods ended March 31, 2025 and 2024, respectively.

We recognized stock-based compensation expense of $ 5.4 million and $ 5.5 million for the three-month periods ended June 30, 2025 and 2024, respectively.

We recognized stock-based compensation expense of $ 10.3 million and $ 10.2 million for the six-month periods ended June 30, 2025 and 2024, respectively.

These amounts include compensation expense related to RSUs and stock issued to participants under the 2020 Employee Stock Purchase Plan (the “2020 ESPP”).

In the three-month periods ended March 31, 2025 and 2024, we issued 38,459 and 41,941 shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In the three-month periods ended March 31, 2025 and 2024, we received no proceeds from purchases under the 2020 ESPP.

In the three-month periods ended June 30, 2025 and 2024, we issued 0.1 million and 0.2 million shares of common stock, respectively, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In both the three-month periods ended June 30, 2025 and 2024, we received proceeds of $ 1.2 million in connection with purchases under the 2020 ESPP.

In each of the six-month periods ended June 30, 2025 and 2024, we issued 0.2 million shares of common stock, upon vesting of RSUs granted under the 2012 Equity Plan and purchases under the 2020 ESPP.

In both the six-month periods ended June 30, 2025 and 2024, we received proceeds of $ 1.2 million in connection with purchases under the 2020 ESPP.

We have operating leases for manufacturing, office space, warehouse space, computer and office equipment and vehicles used in our business operations.

29 unchanged sentences

Total lease liabilities

*Finance lease assets are recorded net of accumulated depreciation of $ 47.7 million and include $ 0.5 million of prepaid financing costs as of March 31, 2025.

*Finance lease assets are recorded net of accumulated depreciation of $ 47.9 million and include $ 0.5 million of prepaid financing costs as of June 30, 2025.

Finance lease assets are recorded net of accumulated depreciation of $ 47.4 million and include $ 0.5 million of prepaid financing costs as of December 31, 2024.

2 unchanged sentences

We lease a logistics and flex manufacturing center in Beverly, Massachusetts to support our principal product manufacturing operations at our corporate headquarters.

Operating lease expense and depreciation and interest expense relating to our finance lease obligation are recognized within our Consolidated Statement of Operations for the three months ended March 31, 2025 and 2024 as follows:

Three months ended

Six months ended

Classification

17 unchanged sentences

Total lease cost

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $ 0.6 million for both the three months ended March 31, 2025 and 2024.

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $ 0.4 million and $ 1.0 million for the three and six months ended June 30, 2025, respectively, and includes short-term lease and variable lease costs of approximately $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2024, respectively.

The lease of our corporate headquarters, shown below under finance leases, had an original lease term of 22 years , beginning in January 2015 and expiring in January 2037, with renewal options.

All other locations are treated as operating leases, with lease terms ranging from one to 16 years .

The tables below reflect the minimum cash outflow regarding our current lease obligations as well as the weighted-average remaining lease term and weighted-average discount rates used in our calculation of our lease obligations and right-of-use assets as of March 31, 2025:

Maturity of Lease Liabilities

16 unchanged sentences

Our cash flows from our finance lease include both an interest component and a principal component.

The table below shows our cash outflows by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets for the three months ended March 31, 2025 and 2024, respectively:

Three months ended March 31,

The table below shows our cash outflows by lease type and related section of our statement of cash flows, as well as the non-cash amount capitalized on our balance sheet in relation to our operating lease right-of-use assets for the six months ended June 30, 2025 and 2024, respectively:

Six months ended June 30,

Cash paid for amounts included in the measurement of lease liabilities

9 unchanged sentences

Three months ended

Six months ended

(in thousands)

4 unchanged sentences

Three months ended

Six months ended

(in thousands)

8 unchanged sentences

Three months ended

Six months ended

(in thousands)

1 unchanged sentence

Deferral of revenue

Other adjustments *

Recognition of deferred revenue

Balance, end of the period

* Amount includes a reclassification of $ 8.0 million of a refund liability included within other current liabilities as of December 31, 2024 to deferred revenue for the three months ended March 31, 2025.

* Adjustment to contracts with customers are assessed to determine if amounts paid by customers represent deferred revenue or liabilities payable to customers and will reclassify such amounts pursuant to our revenue recognition policy and ASC 606.

The majority of our system transactions have either (1) payment terms of 90 % due upon shipment of the system and 10 % due upon acceptance or (2) a pre-shipment deposit ranging from 20 % to 60 %, with the remainder due upon shipment, less 10 % due at acceptance.

5 unchanged sentences

We use historical loss experience rates and apply them to a related aging analysis while also considering customer and/or economic risk where appropriate.

Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency

and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings.

Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings.

The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics.

4 unchanged sentences

Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings.

We did not have any allowance or incur any credit losses or recoveries for the three-month period ended March 31, 2025.

We recorded $ 0.5 million of recovery of bad debt expense for the three month period ended March 31, 2024.

As of both March 31, 2025 and March 31, 2024, we had no provision for credit losses.

We did no t have any allowance or incur any credit losses or recoveries for the three and six month periods ended June 30, 2025.

We did no t have any allowance or incur any credit losses or recoveries for the three month period ended June 30, 2024.

We recorded $ 0.5 million of recovery of bad debt expense for the six month period ended June 30, 2024.

As of both June 30, 2025 and June 30, 2024, we had no provision for credit losses.

Computation of Net Earnings per Share

3 unchanged sentences

Three months ended

Six months ended

(in thousands, except per share amounts)

4 unchanged sentences

Net income per share

Diluted weighted average shares of common stock outstanding does not include 325,364 and 19,548 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended March 31, 2025 and 2024, respectively, as their effect would have been anti-dilutive.

Diluted weighted average shares of common stock outstanding does not include 509,998 and 22,983 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended June 30, 2025 and 2024, respectively, or 411,238 and 20,639 common equivalent shares issuable with respect to outstanding equity awards for the six-month periods ended June 30, 2025 and 2024, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the three months ended March 31, 2025:

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2025:

Unrealized gains on

4 unchanged sentences

Other comprehensive income and reclassifications

Balance at March 31, 2025

Balance at June 30, 2025

Cash, cash equivalents and restricted cash

4 unchanged sentences

Total cash, cash equivalents and restricted cash

As of March 31, 2025, we had $ 7.6 million in restricted cash representing the total of (i) a $ 5.9 million cash collateralized letter of credit serving as a security deposit for our headquarters lease in Beverly, Massachusetts, (ii) a $ 0.9 million letter of credit for custom purposes, (iii) a $ 0.7 million cash collateralized letter of credit relating to workers’ compensation insurance and (iv) a $ 0.1 million deposit relating to customs activity.

As of June 30, 2025, we had $ 7.6 million in restricted cash representing the total of (i) a $ 5.9 million cash collateralized letter of credit serving as a security deposit for our headquarters lease in Beverly, Massachusetts, (ii) a $ 0.9 million letter of credit for customs purposes, (iii) a $ 0.7 million cash collateralized letter of credit relating to workers’ compensation insurance and (iv) a $ 0.1 million deposit relating to customs activity.

See Note 13 for further discussion on the $ 5.9 million cash collateralized letter of credit.

18 unchanged sentences

The changes in our standard product warranty liability are as follows:

Three months ended

Six months ended

(in thousands)

3 unchanged sentences

Changes in estimate of liability for pre-existing warranties during the period

Balance at March 31 (end of period)

Balance at June 30 (end of period)

Amount classified as current

16 unchanged sentences

Other investments that have a maturity of greater than three months but less than one year are included within short-term investments in the consolidated balance sheets.

Investments that have a maturity of greater than one year are included within long-term investments in the consolidated balance sheets.

The following tables set forth our assets which are measured at fair value by level within the fair value hierarchy:

March 31, 2025

June 30, 2025

Fair Value Measurements

6 unchanged sentences

Mark-to-market adjustment on forward exchange contracts

Long-term investments (U.S.

Government Securities and Agency Investments)

December 31, 2024

7 unchanged sentences

Mark-to-market adjustment on forward exchange contracts

The following table summarizes the contractual maturities of our cash equivalents and investments as of June 30, 2025:

Amortized Cost

(in thousands)

Due within one year

Due after one year through two years

4 unchanged sentences

Any gains or losses on these contracts are reported within Other, net in our Consolidated Statement of Operations.

Any open contracts at period end that have settlement dates within one month after the reported period end and any mark-to-market valuation adjustments related to these open contracts are recorded in the current asset or current liability account and any unrealized gain or loss recognized is recorded within Other, net in our Consolidated Statement of Operations.

Any open contracts at period end that have settlement dates within one month after the reported period end are marked-to-market and the valuation adjustments related to these open contracts are recorded in the current asset or current liability account.

Any unrealized gain or loss on the open contracts is recognized and recorded within Other, net in our Consolidated Statement of Operations.

These contracts are measured at fair value using observable market inputs such as forward currency exchange rates and our counterparties’ credit risks.

Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy.

At March 31, 2025, the recognized unrealized loss on these forward exchange contracts was approximately $ 0.1 million.

Based on our continued ability to trade and enter into forward contracts, we consider the markets for our fair value instruments to be active.

We evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of March 31, 2025, such credit risks have not had an adverse impact on the fair value of these instruments.

At June 30, 2025, the recognized unrealized loss on these forward exchange contracts was approximately $ 0.5 million.

on our continued ability to trade and enter into forward contracts, we consider the markets for our fair value instruments to be active.

We evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of June 30, 2025, such credit risks have not had an adverse impact on the fair value of these instruments.

Financing Arrangements

1 unchanged sentence

As part of the sale, we also entered into a 22-year lease agreement of our headquarters facility.

This sale-leaseback is accounted for as a finance lease under generally accepted accounting principles and, as such, we have recorded a finance lease obligation of $ 43.3 million as of March 31, 2025.

This sale-leaseback is accounted for as a finance lease under generally accepted accounting principles and, as such, we have recorded a finance lease obligation of $ 43.0 million as of June 30, 2025.

The associated lease payments include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term.

31, 2025, we had a security deposit of $ 5.9 million related to this lease in the form of a cash collateralized letter of credit issued with UBS Bank USA, which is classified as long-term restricted cash on our balance sheet at March 31, 2025.

Income tax expense was $ 4.5 million for the three months ended March 31, 2025, compared to $ 7.4 million for the three months ended March 31, 2024.

The $ 2.9 million decrease was primarily due to a decrease in pre-tax book income.

The effective tax rate (“ETR”) for the three months ended March 31, 2025 was less than the U.S.

As of June 30, 2025, we had a security deposit of $ 5.9 million related to this lease in the form of a cash collateralized letter of credit, which is classified as long-term restricted cash on our balance sheet at June 30, 2025.

Income tax expense was $ 3.6 million for the three months ended June 30, 2025, compared to $ 6.4 million for the three months ended June 30, 2024.

The $ 2.8 million decrease was primarily due to the decrease in pre-tax book income and an increased Foreign Derived Intangible Income deduction.

The effective tax rate (“ETR”) for the six months ended June 30, 2025 was less than the U.S.

statutory rate of 21 % primarily attributable to Foreign Derived Intangible Income deduction and Federal research and development tax credits.

The reported ETR for the three months ended March 31, 2025 was 13.6 % compared to 12.5 % for the respective 2024 period.

The increase in the reported ETR is primarily related to a decrease in pre-tax book income and stock-based compensation.

The reported ETR for the three months ended June 30, 2025 was 10.3 % compared to 11.2 % for the three months ended June 30, 2024.

On July 4, 2025, U.S tax legislation known as the One Big Beautiful Bill Act (the “OBBBA”) was signed into law.

The OBBBA makes permanent many of the tax provisions enacted as part of the Tax Cuts and Jobs Act of 2017 that were originally set to expire at the end of 2025.

In addition, the OBBBA makes changes to certain U.S.

corporate tax provisions, many of which are not in effect until 2026.

The Company is currently evaluating the impact of this new legislation.

Concentration of Risk

For the three months ended March 31, 2025, two customers accounted for 15.3 % and 15.2 % of total revenue, respectively.

For the three months ended March 31, 2024, no individual customer accounted for greater than ten percent of total revenue.

At March 31, 2025, three customers accounted for 10.7 %, 10.5 % and 10.4 % of accounts receivable, respectively.

For the three months ended June 30, 2025, no individual customer accounted for greater than ten percent of total revenue.

For the three months ended June 30, 2024, one customer accounted for 11.5 % of total revenue.

For the six months ended June 30, 2025, two customers accounted for 11.6 % and 11.2 % of total revenue, respectively.

For the six months ended June 30, 2024, no individual customer accounted for greater than ten percent of total revenue.

At June 30, 2025, no individual customer accounted for greater than ten precent of accounts receivable.

At December 31, 2024, one customer accounted for 10.0 % of accounts receivable.

2 unchanged sentences

This approval brings the current outstanding repurchase authorization to $ 215 million.

During the three months ended March 31, 2025, we repurchased 0.3 million shares of common stock at an average cost of $ 66.22 per share.

During the six months ended June 30, 2025, we repurchased 1.1 million shares of common stock at an average cost of $ 57.20 per share.

The timing and actual number of any additional shares to be repurchased under this program will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions.

14 unchanged sentences

Segment asset information is provided to the CODM but it is not used to allocate resources.

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2025 and 2024:

Three months ended March 31,

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024:

Three months ended June 30,

Six months ended June 30,

(in thousands)

7 unchanged sentences

Reconciliation of profit or loss Adjustments and reconciling items

The above table includes depreciation expense and amortization expense of $ 4.3 million and $ 3.8 million for the three months ended March 31, 2025 and 2024, respectively.

The above table includes depreciation expense and amortization expense of $ 4.5 million and $ 8.8 million for the three and six month periods ended June 30, 2025, respectively, and $ 3.9 million and $ 7.6 million for the three and six month periods ended June 30, 2024, respectively.

Recent Accounting Guidance

7 unchanged sentences

In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”).

Disaggregation of Income Statement

Expenses (“ASU 2024-03”).

ASU 2024-03 is intended to enhance the disclosures for expenses for all public entities in accordance with ASC Topic 220, Income Statement-Reporting Comprehensive Income.

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements