19 unchanged sentences
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
16 unchanged sentences
Three Months Ended
+Added: Six Months Ended
(in thousands)
13 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Consolidated Statements of Operations Data:
10 unchanged sentences
Income tax expense (benefit)
−Removed: Comparison of the First Quarter of 2021 and the First Quarter of 2020
+Added: Comparison of the three and six months ended June 25, 2021 and June 26, 2020
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
−Removed: The increase in net sales from the first quarter of 2020 to the first quarter of 2021 was primarily due to increased demand from our customers as a result of growth in the global wafer fabrication equipment market, as well as share-gains at our largest customers.
−Removed: On a geographic basis, sales in the U.S.
−Removed: increased by $18.3 million to $139.1 million, and foreign sales increased by $26.2 million to $125.4 million.
+Added: The increase in net sales from the three and six months ended June 26, 2020 to the three and six months ended June 25, 2021 was primarily due to increased demand from our customers as a result of growth in the global wafer fabrication equipment market, as well as share-gains at our largest customers.
+Added: Net sales to U.S.
+Added: customers increased by $20.1 million and $38.3 million for the three and six months ended June 25, 2021, respectively.
+Added: On a relative basis, net sales to U.S.
+Added: customers as a percent of total net sales decreased from 53.1% and 54.0% to 48.8% and 50.6% for the three and six months ended June 25, 2021, respectively.
+Added: Net sales to international customers increased by $40.7 million and $66.9 million for the three and six months ended June 25, 2021, respectively.
+Added: On a relative basis, net sales to international customers as a percent of total net sales increased increased from 46.9% and 46.0% to 51.2% and 49.4% for the three and six months ended June 25.
+Added: 2021, respectively.
Cost of Sales and Gross Profit
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Cost of sales
−Removed: The increase in cost of sales and gross profit from the first quarter of 2020 to the first quarter of 2021 was primarily due to increased sales volume.
−Removed: The increase in our gross margin from the first quarter of 2020 to the first quarter of 2021 was primarily due to increased factory utilization, as a result of higher overall volume, and product mix, partially offset by $2.5 million in costs recorded in connection with the planned closure of our Union City, California facility.
−Removed: These costs, which relate to inventory write-down and severance costs, resulted in an approximate 95 basis point reduction in our gross margin for the first quarter of 2021.
−Removed: The facility ceased operations shortly after the close of our first quarter.
+Added: The increase in cost of sales and gross profit from the three and six months ended June 26, 2020 to the three and six months ended June 25, 2021 was primarily due to increased sales volume.
+Added: The increase in our gross margin from the second quarter of 2020 to the second quarter of 2021 was primarily due to increased factory utilization, as a result of higher overall volume, product mix, and $1.5 million in costs recorded in the second quarter of 2020 in connection with the planned closure of our Union City, California facility that did not repeat in the second quarter of 2021.
+Added: The facility ceased operations during the second quarter of 2021.
+Added: The increase in our gross margin from the six months ended June 26, 2020 to the six months ended June 25, 2021 was primarily due to due to increased factory utilization, as a result of higher overall volume, product mix, and $1.4 million in costs recorded in the first quarter of 2020 in connection with a mutual contract settlement that did not repeat in 2021, partially offset by a $0.8 million increase in costs recorded in connection with the planned closure of our Union City, California facility.
Research and Development
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Research and development
−Removed: The increase in research and development expenses from the first quarter of 2020 to the first quarter of 2021 was primarily due to increased employee-related expense, as we expand our engineering team, and materials associated with our new product development programs.
+Added: The increase in research and development expenses from the three and six months ended June 26, 2020 to the three and six months ended June 25, 2021 was primarily due to increased employee-related expense, as we expand our engineering team, and materials associated with our new product development programs.
Selling, General, and Administrative
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Selling, general, and administrative
−Removed: The decrease in selling, general, and administrative expense from the first quarter of 2020 to the first quarter of 2021 was primarily due (i) $1.8 million in executive transition costs associated with the transition of our former CEO to Executive Chairman in the first quarter of 2020 that did not repeat in the first quarter of 2021 and (ii) $0.6 million in decreased share-based compensation expense as a result of non-recurring charges in the first quarter of 2020 that did not repeat in the first quarter of 2021.
+Added: The increase in selling, general, and administrative expense from the second quarter of 2020 to the second quarter of 2021 was primarily due $1.1 million in increased employee-related expenses, including a $0.4 million increase in share-based compensation expense, $0.3 million in increased facility closure costs incurred in connection with the planned closure of our Union City, California facility, and $0.3 million in increased computer hardware and software costs to support the growing organization, partially offset by $0.3 million in reduced professional and related consulting fees.
+Added: The decrease in selling, general, and administrative expense from the six months ended June 26, 2020 to the six months ended June 25, 2021 was primarily due to $1.8 million in executive transition costs associated with the transition of our former CEO to Executive Chairman in the first quarter of 2020 that did not repeat in the first quarter of 2021 and $0.8 million in reduced professional and related consulting fees, partially offset by $0.8 million in increased employee-related expenses and $0.8 million in increased computer hardware and software costs.
Amortization of Intangible Assets
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Amortization of intangibles assets
−Removed: The increase in amortization expense from the first quarter of 2020 to the first quarter of 2021 was primarily due to incremental amortization expense from the acquisition of a customer relationship intangible asset in December 2020 in connection with our acquisition of a precision machining operation in Nogales, Mexico.
+Added: The increase in amortization expense from the three and six months ended June 26, 2020 to the three and six months ended June 25, 2021 was primarily due to incremental amortization expense from the acquisition of a customer relationship intangible asset in December 2020 in connection with our acquisition of a precision machining operation in Nogales, Mexico.
Interest Expense
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Interest expense
−Removed: The decrease in interest expense from the first quarter of 2020 to the first quarter of 2021 was primarily due to a 114 basis point decrease in our weighted average interest rate, from 4.44% to 3.30%, partially offset by a $7.5 million increase in our average amount borrowed during the first quarter of 2021 compared to the first quarter of 2020.
+Added: The decrease in interest expense from the second quarter of 2020 to the second quarter of 2021 was primarily due to a 92 basis point decrease in our weighted average interest rate, from 3.93% to 3.01%, and a $33.5 million decrease in our average amount borrowed during the second quarter of 2021 compared to the second quarter of 2020.
+Added: The decrease in interest expense from the six months ended June 26, 2020 to the six months ended June 25, 2021 was primarily due to a 101 basis point decrease in our weighted average interest rate, from 4.17% to 3.16%, and a $13.0 million decrease in our average amount borrowed during the six months ended June 25, 2021 compared to the six months ended June 26, 2020.
Other Expense (Income), Net
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Other expense, net
−Removed: The change in other expense, net from the first quarter of 2020 to the first quarter of 2021 was primarily due to currency exchange rate changes during the quarter as a result of transactions denominated in the local currencies of our foreign operations.
+Added: The change in other expense, net from the three and six months ended June 26, 2020 to the three and six months ended June 25, 2021 was primarily due to currency exchange rate changes during the quarter as a result of transactions denominated in the local currencies of our foreign operations.
These local currencies consist primarily of the Singapore dollar, Malaysian ringgit, and euro.
1 unchanged sentence
Three Months Ended
+Added: Six Months Ended
(dollars in thousands)
Income tax expense (benefit)
−Removed: The increase in income tax expense from the first quarter of 2020 to the first quarter of 2021 was primarily due to increased taxable income in the U.S.
−Removed: in 2021, as well as a decrease in the release of certain tax reserves related to statute of limitations expirations or settlements compared to the first quarter of 2020.
+Added: The increase in income tax expense from the three and six months ended June 26, 2020 to the three and six months ended June 26, 2021 was primarily due to increased taxable income in the U.S.
+Added: in 2021, partially offset by benefits from share-based compensation activity during the periods, as well as a decrease in the release of certain tax reserves related to statute of limitations expirations or settlements.
Non‑GAAP Results
7 unchanged sentences
Three Months Ended
+Added: Six Months Ended
(dollars in thousands, except per share amounts)
13 unchanged sentences
Shares used to compute diluted EPS
−Removed: Included in this amount for the first quarter of 2021 are (i) non-capitalized costs incurred in connection with our implementation of a new ERP system and a Sarbanes-Oxley (“SOX”) compliance program and (ii) a non-recurring settlement charge.
−Removed: Included in this amount for the first quarter of 2020 are (i) a $1.8 million bonus payment to our former CEO in connection with his transition to executive chairman, (ii) acquisition-related expenses, comprised primarily of expense associated with a two-year retention agreement between the Company and key management personnel of IAN (the “IAN retention agreement”), which we acquired in April 2018, and (iii) non-capitalizable costs incurred in connection with our implementation of a new ERP system and a SOX compliance program.
+Added: Included in this amount for the three and six months ended June 25, 2021 are (i) non-capitalized costs incurred in connection with our implementation of a new ERP system and a Sarbanes-Oxley (“SOX”) compliance program and (ii) a non-recurring settlement charge.
+Added: Included in this amount for the second quarter of 2020 are primarily (i) acquisition-related expenses associated with a two-year retention agreement between the Company and key management personnel of IAN (the “IAN retention agreement”), which we acquired in April 2018, and (ii) non-capitalizable costs incurred in connection with our implementation of a new ERP system and a SOX compliance program.
+Added: Included in this amount for the six months ended June 26, 2020 are (i) a $1.8 million bonus payment to our former CEO in connection with his transition to executive chairman, (ii) acquisition-related expenses associated with the IAN retention agreement, and (iii) non-capitalizable costs incurred in connection with our implementation of a new ERP system and a SOX compliance program.
During the first quarter of 2020, we reached a mutual settlement with the counterparty of a contract dispute and, accordingly, recorded a $1.4 million contract settlement loss to cost of sales.
−Removed: Included in this amount for the first quarter of 2021 are write-off costs associated with inventories determined during the quarter to be obsolete and severance costs associated with affected employees of $2.2 million and $0.2 million, respectively.
−Removed: These charges relate to the planned closure of our manufacturing facility in Union City, California, which we ceased operations in shortly after the close of our 2021 first quarter.
+Added: During the second quarter of 2020, we announced the closure of our manufacturing facility in Union City, California, which we completed during the second quarter of 2021.
+Added: Included in this amount for the second quarter of 2021 are $0.4 million in write-off costs associated with inventories determined during the quarter to be obsolete and $0.3 million in other shutdown related charges, partially offset by a $0.5 million gain realized upon the sale of equipment and other fixed assets.
+Added: As of the end of the second quarter of 2021, the facility was closed and vacated, and no further charges are expected on a go-forward basis .
+Added: Included in this amount for the six months ended June 25, 2021 are $2.6 million in write-off costs associated with inventories determined during the period to be obsolete, $0.3 million in other shutdown related charges, and $0.2 million in severance costs associated with affected employees, partially offset by a $0.5 million gain realized upon the sale of equipment and other fixed assets.
+Added: Included in this amount for the three and six months ended June 26, 2020 are write-off costs associated with inventories determined during the period to be obsolete of $1.3 million and severance costs associated with affected employees of $0.2 million
As part of our purchase price allocation for our acquisition of a precision machining operation in Mexico in December 2020, we recorded acquired-inventory at fair value, resulting in a fair value step-up of $0.2 million.
7 unchanged sentences
Liquidity and Capital Resources
−Removed: We ended the first quarter of 2021 with cash of $242.9 million, a decrease of $10.0 million from the end of the prior quarter.
−Removed: The decrease from the end of the prior quarter was primarily due to payments on long-term debt of $32.2 million, of which $30.0 million was a paydown on our revolving credit facility, and capital expenditures of $5.4 million, partially offset by cash provided by operating activities of $25.6 million and net proceeds from the issuance of shares under our share-based compensation plans of $2.0 million.
+Added: We ended the second quarter of 2021 with cash of $141.7 million, a decrease of $111.2 million from December 25, 2020.
+Added: The decrease during the six months ended June 25, 2021 was primarily due to purchases of marketable securities of $105.0 million, payments on long-term debt of $34.4 million, and capital expenditures of $15.4 million, partially offset by cash from operating activities of $38.9 million and net proceeds from the issuance of shares under our share-based compensation plans of $4.2 million.
We believe that our cash, the amounts available under our revolving credit facility, and our cash flows from operations will be sufficient to meet our anticipated cash needs for at least the next 12 months.
1 unchanged sentence
The following table sets forth a summary of operating, investing, and financing activities for the periods presented:
+Added: Six Months Ended
(in thousands)
4 unchanged sentences
Operating Activities
−Removed: Our cash provided by operating activities of $25.6 million for the first quarter of 2021 consisted of net income of $14.6 million, net non-cash charges of $8.8 million, and a decrease in our net operating assets and liabilities of $2.2 million.
+Added: Our cash provided by operating activities of $38.9 million during the six months ended June 25, 2021 consisted of net income of $37.5 million and net non-cash charges of $17.7 million, partially offset by an increase in our net operating assets and liabilities of $16.3 million.
Net non-cash charges primarily consisted of depreciation and amortization of $11.5 million, share-based compensation of $5.1 million, and deferred taxes of $1.1 million.
−Removed: The increase in our net operating assets and liabilities was primarily due to an increase in accounts payable of $22.1 million, partially offset by increases in inventories and accounts receivable of $9.3 million and $7.7 million, respectively, and a decrease in accrued liabilities of $3.5 million.
+Added: The increase in our net operating assets and liabilities was primarily due to an increase in inventories and accounts receivable of $31.5 million and $18.1 million, respectively, partially offset by an increase in accounts payable of $33.3 million.
Investing Activities
−Removed: Our cash used in investing activities of $5.4 million for the first quarter of 2021 consists of capital expenditures.
+Added: Our cash used in investing activities of $119.9 million during the six months ended June 25, 2021 consisted of purchases of marketable securities of $105.0 million, capital expenditures of $15.4 million, partially offset by proceeds from the sale of equipment and other fixed assets associated with our planned closure of our Union City, California facility of $0.5 million.
Financing Activities
−Removed: Our cash used in financing activities of $30.2 million for the first quarter of 2021 consists of payments on long-term debt of $32.2 million, of which $30.0 million was a paydown on our revolving credit facility, partially offset by net proceeds from the issuance of shares under our share-based compensation plans of $2.0 million.
+Added: Our cash used in financing activities of $30.2 million during the six months ended June 25, 2021 consisted of payments on long-term debt of $34.4 million, of which $30.0 million was a paydown on our revolving credit facility, partially offset by net proceeds from the issuance of shares under our share-based compensation plans of $4.2 million.
Critical Accounting Policies
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.