What changed in this filing

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Item 1. Financial Statements

2024-07-23 compared with 2024-04-23 · 119 added, 91 removed, 344 unchanged (38% of the section changed)

31 unchanged sentences

5,000 shares authorized;

no shares issued and outstanding as of March 30, 2024 and December 31, 2023

no shares issued and outstanding as of June 29, 2024 and December 31, 2023

Common stock, $ 0.025 par value;

100,000 shares authorized;

65,525 shares issued and outstanding as of March 30, 2024, and 65,052 shares issued and outstanding as of December 31, 2023

65,800 shares issued and outstanding as of June 29, 2024, and 65,052 shares issued and outstanding as of December 31, 2023

Additional paid-in capital 1,121,786 1,078,393

6 unchanged sentences

(In thousands, except per share data)

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 June 29,

Revenue $ 198,139 $ 261,016 $ 424,449 $ 511,024

9 unchanged sentences

Interest income, net 2,960 2,255 5,595 3,895

Other expense, net ( 135 ) ( 167 )

Other income (expense), net ( 286 ) 163 ( 421 ) ( 4 )

Total interest income and other expense, net 2,674 2,418 5,174 3,891

Income before income taxes 468 11,409

Income taxes 365 1,811

Net income $ 103 $ 9,598

Net income per common share:

Income (loss) before income taxes ( 8,682 ) 14,229 ( 8,214 ) 25,638

Income taxes (benefit) ( 724 ) 4,856 ( 359 ) 6,667

Net income (loss) $ ( 7,958 ) $ 9,373 $ ( 7,855 ) $ 18,971

Net income (loss) per common share:

Basic $ ( 0.12 ) $ 0.14 $ ( 0.12 ) $ 0.29

1 unchanged sentence

Weighted-average number of shares used to compute

net income per common share:

net income (loss) per common share:

Basic 65,678 66,271 65,509 66,157

Diluted 65,678 69,657 65,509 69,684

Net income $ 103 $ 9,598

Net income (loss) $ ( 7,958 ) $ 9,373 $ ( 7,855 ) $ 18,971

Other comprehensive income (loss), net of tax:

8 unchanged sentences

Shares Amount

Balance as of December 31, 2023 65,052 $ 1,627 $ 1,078,393 $ ( 659 ) $ ( 360,379 ) $ 718,982

Balance as of March 30, 2024 65,525 $ 1,638 $ 1,102,314 $ ( 983 ) $ ( 360,276 ) $ 742,693

Stock-based compensation — — 15,458 — — 15,458

Issuance of common stock under equity incentive plans, net of forfeitures 275 7 4,014 — — 4,021

Net loss — — — — ( 7,958 ) ( 7,958 )

Other comprehensive income — — — 10 — 10

Balance as of June 29, 2024 65,800 $ 1,645 $ 1,121,786 $ ( 973 ) $ ( 368,234 ) $ 754,224

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of April 1, 2023 66,244 $ 1,656 $ 1,097,596 $ ( 1,307 ) $ ( 380,106 ) $ 717,839

Stock-based compensation — — 17,844 — — 17,844

Issuance of common stock under equity incentive plans, net of forfeitures 276 7 5,806 — — 5,813

Repurchases of common stock ( 200 ) ( 5 ) ( 8,812 ) — — ( 8,817 )

1 unchanged sentence

Other comprehensive loss — — — ( 282 ) — ( 282 )

Balance as of March 30, 2024 65,525 $ 1,638 $ 1,102,314 $ ( 983 ) $ ( 360,276 ) $ 742,693

Balance as of July 1, 2023 66,320 $ 1,658 $ 1,112,434 $ ( 1,589 ) $ ( 370,733 ) $ 741,770

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

4 unchanged sentences

Repurchases of common stock ( 114 ) ( 3 ) ( 3,735 ) — — ( 3,738 )

Net loss — — — — ( 7,855 ) ( 7,855 )

Other comprehensive loss — — — ( 314 ) ( 314 )

Balance as of June 29, 2024 65,800 $ 1,645 $ 1,121,786 $ ( 973 ) $ ( 368,234 ) $ 754,224

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of December 31, 2022 65,735 $ 1,644 $ 1,070,100 $ ( 2,473 ) $ ( 389,704 ) $ 679,567

Stock-based compensation — — 34,064 — — 34,064

Issuance of common stock under equity incentive plans, net of forfeitures 810 20 18,264 — — 18,284

Repurchases of common stock ( 225 ) ( 6 ) ( 9,994 ) — — ( 10,000 )

Net income — — — — 18,971 18,971

Other comprehensive income — — — 884 — 884

Balance as of April 1, 2023 66,244 $ 1,656 $ 1,097,596 $ ( 1,307 ) $ ( 380,106 ) $ 717,839

Balance as of July 1, 2023 66,320 $ 1,658 $ 1,112,434 $ ( 1,589 ) $ ( 370,733 ) $ 741,770

See accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

(In thousands, unaudited)

Three Months Ended

2024 April 1,

Six Months Ended

Operating activities:

Net income $ 103 $ 9,598

Adjustments to reconcile net income to net cash provided by operating activities:

Net income (loss) $ ( 7,855 ) $ 18,971

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation 32,315 34,064

14 unchanged sentences

Purchases of marketable securities ( 148,897 ) ( 105,888 )

Sales of marketable securities 48,734 —

Maturities of marketable securities 82,805 97,223

Net cash provided by (used in) investing activities 3,281 ( 3,278 )

Net cash used in investing activities ( 27,019 ) ( 18,772 )

Financing activities:

29 unchanged sentences

Quarterly periods are based on a 4-4-5 calendar with the first quarter ending on the Saturday closest to March 31 st .

As a result, the Company had one less day in the three months ended March 30, 2024 than for the three months ended April 1, 2023.

As a result, the Company had one less day in the six months ended June 29, 2024 than for the six months ended July 1, 2023.

The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes.

2 unchanged sentences

The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023.

The Company’s significant accounting policies did not change during the three months ended March 30, 2024.

The Company’s significant accounting policies did not change during the six months ended June 29, 2024.

Newly Adopted Accounting Standard

The Company did not adopt any new accounting standards during the three months ended March 30, 2024 that were significant to the Company.

The Company did not adopt any new accounting standards during the six months ended June 29, 2024 that were significant to the Company.

Recent Accounting Pronouncements Not Yet Adopted

There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended March 30, 2024 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, that are significant or expected to be significant to the Company.

There have been no additional accounting pronouncements or changes in accounting pronouncements during the six months ended June 29, 2024 as compared with the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, that are significant or expected to be significant to the Company.

Cash, Cash Equivalents and Marketable Securities

12 unchanged sentences

Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as other expense, net.

There were no realized gains and losses for each of the three months ended March 30, 2024 and April 1, 2023.

Realized gains and losses were de minimis for the three and six months ended June 29, 2024 and July 1, 2023.

Cash, cash equivalents and marketable securities consisted of the following (in thousands):

5 unchanged sentences

government securities — 9,969

government agency securities 997 —

Total cash and cash equivalents 84,486 63,409

Marketable securities:

Corporate debt securities 66,441 7,000

government securities 46,929 92,277

1 unchanged sentence

Commercial paper 21,544 14,139

Corporate debt securities 6,999 7,000

Municipal securities — —

Certificates of deposit 6,260 —

Total marketable securities 176,733 156,937

2 unchanged sentences

The amortized cost and fair value of marketable securities were as follows (in thousands):

As of March 30, 2024 Amortized Cost Unrealized Losses Fair Value

government securities $ 86,588 $ ( 78 ) $ 86,510

As of June 29, 2024 Amortized Cost Unrealized Losses Fair Value

Corporate debt securities $ 66,526 $ ( 85 ) $ 66,441

Commercial paper 60,610 ( 27 ) 60,583

government securities 46,954 ( 25 ) 46,929

government agency securities 35,694 ( 135 ) 35,559

Corporate debt securities 7,027 ( 28 ) 6,999

Certificates of deposit 6,263 ( 3 ) 6,260

$ 216,047 $ ( 275 ) $ 215,772

15 unchanged sentences

The following tables sets forth the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):

As of March 30, 2024 Level 1 Level 2 Total

As of June 29, 2024 Level 1 Level 2 Total

Money market funds $ 65 $ — $ 65

government securities 46,929 — 46,929

Corporate debt securities — 66,441 66,441

Commercial paper — 60,583 60,583

government agency securities — 35,559 35,559

Corporate debt securities — 6,999 6,999

Certificates of deposit — 6,260 6,260

$ 46,994 $ 168,843 $ 215,837

34 unchanged sentences

2024 December 31,

Component inventory held by suppliers $ 25,536 $ 32,182

Compensation and related benefits $ 31,749 $ 36,741

Component inventory held by suppliers 17,331 32,182

Professional and consulting fees 6,543 7,717

Customer advances or rebates 6,044 5,967

Current portion of warranty and retrofit 5,216 5,655

1 unchanged sentence

Taxes payable 3,361 4,317

Litigation settlement 3,250 3,250

Product returns 2,913 2,897

Customer advances or rebates 3,038 5,967

Insurance 2,125 2,107

Freight 1,003 1,510

Travel expenses 1,001 599

Business events 841 2,938

Litigation settlement — 3,250

Other 6,737 6,205

1 unchanged sentence

Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 June 29,

Balance at beginning of period $ 7,655 $ 8,445 $ 8,029 $ 8,386

Accruals for product warranty and retrofit

392 802 731 1,817

Cost of warranty and retrofit claims

5 unchanged sentences

Certain of the Company’s operating leases contain renewal options and rent acceleration clauses.

Future minimum payments under the non-cancelable operating leases consisted of the following as of March 30, 2024 (in thousands):

Future minimum payments under the non-cancelable operating leases consisted of the following as of June 29, 2024 (in thousands):

Period Future Minimum Lease Payments

3 unchanged sentences

Less imputed interest ( 767 )

As of March 30, 2024, the operating lease liability consisted of the following (in thousands):

As of June 29, 2024, the operating lease liability consisted of the following (in thousands):

Accrued liabilities - current portion of operating leases $ 4,281

2 unchanged sentences

The future minimum lease payments under the lease are $ 3.7 million and are included in the table above.

The weighted average discount rate for the Company’s operating leases as of March 30, 2024 was 5.1 %.

The weighted average remaining lease term as of March 30, 2024 was 3.1 years.

For the three months ended March 30, 2024 and April 1, 2023, total rent expense of the Company was $ 1.1 million and $ 1.2 million, respectively.

Cash paid within operating cash flows for operating leases was $ 1.1 million and $ 1.2 million for the three months ended March 30, 2024 and April 1, 2023, respectively.

The weighted average discount rate for the Company’s operating leases as of June 29, 2024 was 5.0 %.

The weighted average remaining lease term as of June 29, 2024 was 3.0 years.

For the three and six months ended June 29, 2024, rent expense was $ 1.1 million and $ 2.3 million, respectively.

For the three and six months ended July 1, 2023, rent expense was $ 1.2 million and $ 2.4 million, respectively.

Cash paid within operating cash flows for operating leases was $ 2.2 million and $ 2.3 million for the six months ended June 29, 2024 and July 1, 2023, respectively.

Purchase Commitments

8 unchanged sentences

The Company records the related charges in “Cost of revenue” in its Condensed Consolidated Statements of Comprehensive Income (Loss).

As of March 30, 2024 and December 31, 2023, the Company had approximately $ 146.8 million and $ 176.3 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs.

As of June 29, 2024 and December 31, 2023, the Company had approximately $ 136.3 million and $ 176.3 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs.

From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities.

4 unchanged sentences

The 2019 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock or cash-based awards and dividend equivalents to eligible individuals.

As of March 30, 2024, there were 2.9 million shares available for issuance under the 2019 Plan.

During the three months ended March 30, 2024, time-based stock option awards exercisable for up to an aggregate of 0.3 million shares of common stock were granted with a grant date weighted-average exercise price of $ 35.95 per share.

As of June 29, 2024, there were 2.8 million shares available for issuance under the 2019 Plan.

During the three months ended June 29, 2024, time-based stock option awards exercisable for up to an aggregate of 0.1 million shares of common stock were granted with a grant date weighted-average exercise price of $ 30.07 per share.

During the six months ended June 29, 2024, stock option awards exercisable for up to an aggregate of 0.4 million shares of common stock were granted with a grant date weighted-average exercise price of $ 34.36 per share.

These stock option awards vest 25 % on the first anniversary of the vesting commencement date and on a quarterly basis thereafter over an additional three years .

9 unchanged sentences

The maximum award is 100 %.

The probability of meeting a portion of the performance conditions related to these performance-based stock option awards was assessed to be probable as of March 30, 2024, and stock-based compensation expense of $ 1.7 million was recognized for the three months ended March 30, 2024.

During the three months ended March 30, 2024, 168,000 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 8.56 per share.

As of March 30, 2024, unrecognized stock-based compensation expense of $ 87.8 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.3 years.

The probability of meeting a portion of the performance conditions related to these performance-based stock option awards was assessed to be probable as of June 29, 2024, and stock-based compensation expense of $ 1.1 million was recognized for the three months ended June 29, 2024.

For the six months ended June 29, 2024, stock-based compensation expense of $ 2.8 million was recognized.

During the three months ended June 29, 2024, 30,000 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 9.11 per share.

During the six months ended June 29, 2024, 0.2 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $ 8.64 per share.

As of June 29, 2024, unrecognized stock-based compensation expense of $ 70.8 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.1 years.

Employee Stock Purchase Plans

3 unchanged sentences

The price of common stock purchased under the ESPP is 85 % of the lower of the fair market value of the common stock on the commencement date and the end date of each six-month offering period.

As of March 30, 2024, there were 4.3 million shares available for issuance under the ESPP.

During the three months ended March 30,

2024, 0.2 million shares were purchased under the ESPP.

As of March 30, 2024, unrecognized stock-based compensation expense of $ 0.9 million related to the ESPP is expected to be recognized over a remaining service period of 0.4 years.

As of June 29, 2024, there were 4.3 million shares available for issuance under the ESPP.

During the six months ended June 29, 2024, 0.2 million shares were purchased under the ESPP.

As of June 29, 2024, unrecognized stock-based compensation expense of $ 0.3 million related to the ESPP is expected to be recognized over a remaining service period of 0.1 years.

The NQ ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25 % of their eligible recurring compensation.

2 unchanged sentences

The maximum number of shares of common stock currently authorized for issuance under the NQ ESPP is 7.5 million shares.

As of March 30, 2024, there were 3.1 million shares available for issuance under the NQ ESPP.

During the three months ended March 30, 2024, 0.2 million shares were purchased and issued.

As of March 30, 2024, unrecognized stock-based compensation expense of $ 11.3 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 0.8 years.

As of June 29, 2024, there were 2.9 million shares available for issuance under the NQ ESPP.

During the six months ended June 29, 2024, 0.5 million shares were purchased and issued.

As of June 29, 2024, unrecognized stock-based compensation expense of $ 14.1 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 0.9 years.

Stock-Based Compensation

The following table summarizes stock-based compensation expense (in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 June 29,

Cost of revenue $ 707 $ 780 $ 1,343 $ 1,580

9 unchanged sentences

The repurchase program does not obligate the Company to acquire a particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

For the three months ended March 30, 2024, the Company purchased 0.1 million shares of common stock for $ 3.7 million at an average price per share of $ 32.87 .

As of March 30, 2024, the remaining balance under the current authorizations was $ 109.9 million.

No shares were purchased during the three months ended June 29, 2024.

For the six months ended June 29, 2024, the Company purchased 0.1 million shares of common stock for $ 3.7 million at an average price per share of $ 32.87 .

As of June 29, 2024, the remaining balance under the current authorizations was $ 109.9 million.

Revenue from Contracts with Customers

3 unchanged sentences

The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands):

Three Months Ended

March 30, 2024 April 1, 2023

Three Months Ended Six Months Ended

June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023

United States $ 182,705 $ 232,423 $ 392,795 $ 460,362

Americas ex U.S.

7,052 11,329 14,187 18,866

Europe 6,712 14,737 13,572 27,106

5 unchanged sentences

Amounts are billed in accordance with the agreed-upon contractual terms.

Contract assets were $ 3.3 million as of March 30, 2024 as compared to $ 4.7 million as of December 31, 2023, and are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets.

The Company expects to bill 46 % of the March 30, 2024 balance during 2024.

Contract assets were $ 3.3 million as of June 29, 2024 as compared to $ 4.7 million as of December 31, 2023, and are included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets.

The Company expects to bill 35 % of the June 29, 2024 balance during 2024.

Contract Liability

Deferred revenue was $ 63.9 million and $ 61.5 million as of March 30, 2024 and December 31, 2023, respectively.

The increase in the deferred revenue balance for the three months ended March 30, 2024 was driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $ 14.0 million of revenue recognized that was included in the deferred revenue balance at the beginning of the period.

Deferred revenue was $ 54.2 million, $ 63.9 million and $ 61.5 million as of June 29, 2024, March 30, 2024 and December 31, 2023, respectively.

The decrease in the deferred revenue balance for the three and six months ended June 29, 2024 was driven by $ 13.4 million and $ 20.2 million of revenue recognized that was included in the deferred revenue balance at the beginning of each respective period and to a trend to move to monthly from annual billing arrangements.

This was partially offset by cash payments received or due in advance of satisfying the Company’s performance obligations.

Revenue allocated to remaining performance obligations (“RPOs”) represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment.

RPOs were $ 245.2 million as of March 30, 2024, and the Company expects to recognize as revenue 40 % of this amount over the next 12 months and nearly all of the remainder over the two years thereafter.

RPOs were $ 266.9 million as of June 29, 2024, and the Company expects to recognize as revenue 39 % of this amount over the next 12 months and nearly all of the remainder over the two years thereafter.

Contract Costs

The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year.

As of March 30, 2024 and December 31, 2023, the unamortized balance of deferred commissions was $ 11.8 million and $ 12.0 million, respectively.

For the three months ended March 30, 2024 and April 1, 2023, the amount of amortization was $ 2.0 million and $ 1.3 million, respectively.

As of June 29, 2024 and December 31, 2023, the unamortized balance of deferred commissions was $ 12.7 million and $ 12.0 million, respectively.

For the three and six months ended June 29, 2024, the amount of amortization was $ 2.1 million and $ 4.2 million, respectively, compared to $ 1.5 million and $ 2.9 million for the three and six months ended July 1, 2023, respectively.

There was no impairment loss in relation to the costs capitalized for these periods.

Concentration of Customer Risk

No customer accounted for more than 10% of the Company’s revenue for the three months ended March 30, 2024 and April 1, 2023.

One customer represented 15 % of the Company’s total receivables as of March 30, 2024.

No customer accounted for more than 10% of the Company’s revenue for the three and six months ended June 29, 2024 and July 1, 2023.

One customer represented 14 % of the Company’s total receivables as of June 29, 2024.

Two customers represented 19 % and 14 % of the Company’s accounts receivable as of December 31, 2023.

The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages):

Three Months Ended

2024 April 1,

Income before income taxes $ 468 $ 11,409

Income taxes $ 365 $ 1,811

Three Months Ended Six Months Ended

2023 June 29,

Income (loss) before income taxes $ ( 8,682 ) $ 14,229 $ ( 8,214 ) $ 25,638

Income taxes (benefit) $ ( 724 ) $ 4,856 $ ( 359 ) $ 6,667

Effective tax rate 8.3 % 34.1 % 4.4 % 26.0 %

The Company has historically recorded its interim period provision for income taxes by applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items.

However, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate is highly sensitive to fluctuations in pre-tax income and does not provide a reasonable estimate for income taxes in the interim period.

As such, the Company has computed its provision for income taxes for the three months ended March 30, 2024 using an actual year-to-date tax calculation.

However, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate is highly sensitive

to fluctuations in pre-tax income and does not provide a reasonable estimate for income taxes in the interim period.

As such, the Company has computed its provision for income taxes for the three and six months ended June 29, 2024 using an actual year-to-date tax calculation.

The Company plans to revert to applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items once that method produces more reasonable results.

The Company’s effective tax rate for the three months ended March 30, 2024 and April 1, 2023 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes and the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

The Company’s effective tax rate for the three and six months ended June 29, 2024 and July 1, 2023 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes and the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

federal research tax credits, excess tax benefits from stock-based compensation and the U.S.

tax impact of foreign operations.

The Company has net deferred tax assets that have arisen primarily as a result of temporary differences, net operating loss carryforwards, capitalized research and development costs and tax credits.

The Company has net deferred tax assets that have arisen primarily as a result of temporary differences, capitalized research and development costs and tax credits.

The Company’s ability to realize a deferred tax asset is based on its ability to generate sufficient future taxable income within the applicable carryforward period and subject to any applicable limitations.

Management believes that it is more likely than not that the Company will utilize a significant portion of its deferred tax assets.

The Company maintained a valuation of $ 29.9 million the three months ended March 30, 2024 on certain U.S.

The Company maintained a valuation allowance of $ 29.9 million for the three and six months ended June 29, 2024 and July 1, 2023 on certain U.S.

federal and state deferred tax assets that the Company believes are not more likely than not to be realized in future periods.

3 unchanged sentences

The Company currently does not expect Pillar Two to have a material impact on its financial statements.

Net Income Per Common Share

The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):

Three Months Ended

2024 April 1,

Net income $ 103 $ 9,598

Weighted-average common shares outstanding used to compute basic net income per share 65,338 66,044

Net Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):

Three Months Ended Six Months Ended

2023 June 29,

Net income (loss) $ ( 7,958 ) $ 9,373 $ ( 7,855 ) $ 18,971

Weighted-average common shares outstanding used to compute basic net income (loss) per share 65,678 66,271 65,509 66,157

Effect of dilutive common stock equivalents — 3,386 — 3,527

Weighted-average common shares outstanding used to compute diluted net income per share 68,119 69,708

Net income per common share:

Basic net income per common share $ 0.00 $ 0.15

Diluted net income per common share $ 0.00 $ 0.14

Weighted-average common shares outstanding used to compute diluted net income (loss) per share 65,678 69,657 65,509 69,684

Net income (loss) per common share:

Basic net income (loss) per common share $ ( 0.12 ) $ 0.14 $ ( 0.12 ) $ 0.29

Diluted net income (loss) per common share $ ( 0.12 ) $ 0.13 $ ( 0.12 ) $ 0.27

Potentially dilutive shares excluded, weighted average 12,300 4,714 11,863 3,786

Potentially dilutive shares have been excluded from the computation of diluted net income per common share when their effect is antidilutive.

Potentially dilutive shares have been excluded from the computation of diluted net income (loss) per common share when their effect is antidilutive.

These antidilutive shares were from stock options.

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