What changed in this filing

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Item 1. Financial Statements

2024-11-05 compared with 2024-08-07 · 72 added, 61 removed, 372 unchanged (26% of the section changed)

3 unchanged sentences

(in thousands, except share and per share amounts)

September 27,

2024 December 29,

43 unchanged sentences

(in thousands, except share and per share amounts)

Three Months Ended Six Months Ended

2024 June 30,

2023 June 28,

2024 June 30,

Three Months Ended Nine Months Ended

September 27,

2024 September 29,

2023 September 27,

2024 September 29,

Net sales $ 211,139 $ 196,761 $ 615,749 $ 607,639

6 unchanged sentences

Total operating expenses 28,176 28,893 82,730 85,987

Operating income (loss) ( 2,262 ) ( 2,906 ) ( 6,003 ) 1,888

Operating loss ( 385 ) ( 4,824 ) ( 6,388 ) ( 2,936 )

Interest expense, net 1,638 5,136 7,592 14,716

13 unchanged sentences

(in thousands, except share amounts)

For the three months ending June 28, 2024 Ordinary Shares Additional

For the three months ending September 27, 2024 Ordinary Shares Additional

Capital Treasury

3 unchanged sentences

Shares Amount Shares Amount

Balance at March 29, 2024 33,467,846 $ 3 $ 593,125 4,437,439 $ ( 91,578 ) $ 195,682 $ 697,232

Balance at June 28, 2024 33,629,331 $ 3 $ 595,881 4,437,439 $ ( 91,578 ) $ 190,570 $ 694,876

Ordinary shares issued from exercise of stock options 7,309 — 170 — — — 170

Ordinary shares issued from vesting of restricted share units 43,290 — ( 953 ) — — — ( 953 )

Ordinary shares issued from employee share purchase plan 44,987 — 1,286 — — — 1,286

Share-based compensation expense — — 4,672 — — — 4,672

Net loss — — — — — ( 2,776 ) ( 2,776 )

Balance at June 28, 2024 33,629,331 $ 3 $ 595,881 4,437,439 $ ( 91,578 ) $ 190,570 $ 694,876

For the three months ending June 30, 2023 Ordinary Shares Additional

Balance at September 27, 2024 33,724,917 $ 3 $ 601,056 4,437,439 $ ( 91,578 ) $ 187,794 $ 697,275

For the three months ending September 29, 2023 Ordinary Shares Additional

Capital Treasury

3 unchanged sentences

Shares Amount Shares Amount

Balance at March 31, 2023 29,034,946 $ 3 $ 437,388 4,437,439 $ ( 91,578 ) $ 247,651 $ 593,464

Balance at June 30, 2023 29,241,561 $ 3 $ 441,883 4,437,439 $ ( 91,578 ) $ 226,995 $ 577,303

Ordinary shares issued from exercise of stock options 90,247 — 1,602 — — — 1,602

Ordinary shares issued from vesting of restricted share units 43,580 — ( 553 ) — — — ( 553 )

Ordinary shares issued from employee share purchase plan 49,917 — 1,131 — — — 1,131

Share-based compensation expense — — 4,752 — — — 4,752

Net loss — — — — — ( 10,425 ) ( 10,425 )

Balance at June 30, 2023 29,241,561 $ 3 $ 441,883 4,437,439 $ ( 91,578 ) $ 226,995 $ 577,303

Balance at September 29, 2023 29,375,388 $ 3 $ 447,684 4,437,439 $ ( 91,578 ) $ 216,570 $ 572,679

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(in thousands, except share amounts)

For the six months ending June 28, 2024 Ordinary Shares Additional

For the nine months ending September 27, 2024 Ordinary Shares Additional

Capital Treasury

10 unchanged sentences

Net loss — — — — — ( 16,877 ) ( 16,877 )

Balance at June 28, 2024 33,629,331 $ 3 $ 595,881 4,437,439 $ ( 91,578 ) $ 190,570 $ 694,876

For the six months ending June 30, 2023 Ordinary Shares Additional

Balance at September 27, 2024 33,724,917 $ 3 $ 601,056 4,437,439 $ ( 91,578 ) $ 187,794 $ 697,275

For the nine months ending September 29, 2023 Ordinary Shares Additional

Capital Treasury

9 unchanged sentences

Net loss — — — — — ( 31,086 ) ( 31,086 )

Balance at June 30, 2023 29,241,561 $ 3 $ 441,883 4,437,439 $ ( 91,578 ) $ 226,995 $ 577,303

Balance at September 29, 2023 29,375,388 $ 3 $ 447,684 4,437,439 $ ( 91,578 ) $ 216,570 $ 572,679

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

2024 June 30,

Nine Months Ended

September 27,

2024 September 29,

Cash flows from operating activities:

Net loss $ ( 16,877 ) $ ( 31,086 )

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

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

Depreciation and amortization 22,768 26,036

44 unchanged sentences

References to 2024 and 2023 relate to the fiscal years then ended, respectively.

The three-month periods ended June 28, 2024 and June 30, 2023 are each 13 weeks.

References to the second quarter of 2024 and 2023 relate to the three-month periods then ended .

The three-month periods ended September 27, 2024 and September 29, 2023 are each 13 weeks.

References to the third quarter of 2024 and 2023 relate to the three-month periods then ended .

Use of Estimates

35 unchanged sentences

The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods.

The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements.

We are currently evaluating the effect that the adoption of this ASU may have on our consolidated financial statements.

The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods prese nted in the financial statements.

We are currently evaluating the ASU's impact on the required disclosures.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740).

6 unchanged sentences

Inventories consist of the following:

September 27,

2024 December 29,

6 unchanged sentences

Property and equipment consist of the following:

September 27,

2024 December 29,

8 unchanged sentences

Total property and equipment, net $ 89,283 $ 92,755

Depreciation expense was $ 5.3 million and $ 4.4 million for the second quarter of 2024 and 2023, respectively.

Depreciation expense was $ 10.4 million and $ 8.7 million for the six months ended June 28, 2024 and June 30, 2023, respectively.

Depreciation expense was $ 5.2 million and $ 4.9 million for the third quarter of 2024 and 2023, respectively.

Depreciation expense was $ 15.6 million and $ 13.7 million for the nine months ended September 27, 2024 and September 29, 2023, respectively.

Cloud Computing Implementation Costs

2 unchanged sentences

To date, these costs have been those incurred to implement a new company-wide enterprise resource planning system.

The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $ 7.6 million and $ 8.1 million as of June 28, 2024 and December 29, 2023, respectively, and is included in other noncurrent assets on our consolidated balance sheets.

The related amortization expense, which is included in selling, general, and administrative expense on our consolidated statements of operations, was $ 0.3 million and $ 0.2 million for the second quarter of 2024 and 2023, respectively, and $ 0.5 million and $ 0.5 million for the six months ended June 28, 2024 and June 30, 2023, respectively.

The balance of capitalized cloud computing implementation costs, net of accumulated amortization, was $ 10.0 million and $ 8.1 million as of September 27, 2024 and December 29, 2023, respectively, and is included in other noncurrent assets on our consolidated balance sheets.

The related amortization expense, which is included in selling, general, and administrative expense on our consolidated statements of operations, was $ 0.3 million and $ 0.3 million for the third quarter of 2024 and 2023, respectively, and $ 0.8 million and $ 0.8 million for the nine months ended September 27, 2024 and September 29, 2023, respectively.

Note 4 – Intangible Assets

Definite‑lived intangible assets consist of the following:

June 28, 2024

September 27, 2024

Gross value Accumulated

23 unchanged sentences

The components of lease expense are as follows:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 28,

2024 June 30,

Three Months Ended Nine Months Ended

September 27,

2024 September 29,

2023 September 27,

2024 September 29,

Operating lease cost $ 2,603 $ 2,384 $ 7,587 $ 7,188

Supplemental cash flow information related to leases is as follows:

Six Months Ended

2024 June 30,

Nine Months Ended

September 27,

2024 September 29,

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Supplemental balance sheet information related to leases is as follows:

September 27,

2024 December 29,

1 unchanged sentence

Weighted-average discount rate of operating leases 4.1 % 3.4 %

Future minimum lease payments under non-cancelable leases are as follows as of June 28, 2024:

Future minimum lease payments under non-cancelable leases are as follows as of September 27, 2024:

2024, remaining $ 2,537

5 unchanged sentences

Income tax information for the periods reported is as follows:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 28,

2024 June 30,

Three Months Ended Nine Months Ended

September 27,

2024 September 29,

2023 September 27,

2024 September 29,

Income tax expense $ 166 $ 436 $ 2,021 $ 12,521

1 unchanged sentence

Effective income tax rate ( 6.4 ) % ( 4.4 ) % ( 13.6 ) % ( 67.4 ) %

Our effective tax rate for the three and six months ended June 28, 2024 differs from the statutory rate primarily due to taxes on foreign income that differs from the U.S.

Our effective tax rate for the three and nine months ended September 27, 2024 differs from the statutory rate primarily due to taxes on foreign income that differs from the U.S.

tax rate, including a tax holiday in Singapore from which we will benefit through 2026, and a valuation allowance against U.S.

deferred tax assets.

Our effective tax rate for the three and six months ended June 30, 2023 differs from the statutory rate primarily due to a valuation allowance recorded against our U.S.

Our effective tax rate for the three and nine months ended September 29, 2023 differs from the statutory rate primarily due to a valuation allowance recorded against our U.S.

federal and state deferred tax assets, as well as taxes on foreign income that differ from the U.S.

4 unchanged sentences

federal and state net deferred tax assets until there is sufficient positive evidence to support the reversal of all or some portion of the valuation allowance.

The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $ 4.2 million as of June 28, 2024.

The related interest and penalties were $ 0.5 million.

The ending balance for the unrecognized tax benefits for uncertain tax positions was approximately $ 4.4 million as of September 27, 2024, of which $ 0.5 million relates to estimated interest and penalties.

The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant.

As of June 28, 2024, we were under examination by California tax authorities.

As of September 27, 2024, we were under examination by California tax authorities.

Note 7 – Employee Benefit Programs

2 unchanged sentences

Eligible employees receive a discretionary matching contribution equal to 50 % of a participant’s deferral, up to an annual matching maximum of 4 % of a participant’s annual compensation.

Matching contributions were $ 0.6 million and $ 0.6 million for the second quarter of 2024 and 2023, respectively, and $ 1.4 million and $ 1.5 million for the six months ended June 28, 2024 and June 30, 2023, respectively.

Matching contributions were $ 0.6 million and $ 0.7 million for the third quarter of 2024 and 2023, respectively, and $ 2.0 million and $ 2.2 million for the nine months ended September 27, 2024 and September 29, 2023, respectively.

Note 8 – Long-Term Debt

Long‑term debt consists of the following:

September 27,

2024 December 29,

10 unchanged sentences

The credit facilities mature, and amounts due thereunder become payable, on October 29, 2026.

Interest is charged at either the Base Rate or the Bloomberg Short-Term Bank Yield (“BSBY”) Rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin.

As of September 27, 2024, i nterest is charged at either the Base Rate or the Bloomberg Short-Term Bank Yield (“BSBY”) Rate (as such terms are defined in the credit agreement) at our option, plus an applicable margin.

The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5 %, or iii) the BSBY Rate plus 1.00 %.

4 unchanged sentences

BSBY Rate interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than three months.

As of June 28, 2024, our credit facilities bore interest under the BSBY rate option at 7.27 %.

As of September 27, 2024, our credit facilities bore interest under the BSBY rate option at 7.19 %.

Note 9 – Share‑Based Compensation

5 unchanged sentences

Shares withheld are not reflected as an issuance of ordinary shares within our consolidated statements of shareholders’ equity, as the shares are never issued, and the associated tax payments are reflected as financing activities within our consolidated statements of cash flows.

Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $ 3.9 million and $ 4.3 million for the second quarter of 2024 and 2023, respectively, and $ 6.3 million and $ 7.9 million for the six months ended June 28, 2024 and June 30, 2023, respectively.

Share‑based compensation expense across all plans for options, RSUs, and employee share purchase rights was $ 4.7 million and $ 4.8 million for the third quarter of 2024 and 2023, respectively, and $ 11.0 million and $ 12.7 million for the nine months ended September 27, 2024 and September 29, 2023, respectively.

Stock Options

8 unchanged sentences

Forfeited or expired ( 639 ) $ 21.76

Outstanding, June 28, 2024 439,193 $ 24.28 1.4 years $ 6,266

Exercisable, June 28, 2024 439,193 $ 24.28 1.4 years $ 6,266

Outstanding, September 27, 2024 431,884 $ 24.30 1.2 years $ 3,285

Exercisable, September 27, 2024 431,884 $ 24.30 1.2 years $ 3,285

Restricted Share Units

9 unchanged sentences

Forfeited ( 75,277 ) ( 13,021 ) ( 23,419 ) $ 30.22

Unvested, June 28, 2024 1,151,884 178,610 201,841 $ 33.61

Unvested, September 27, 2024 1,096,554 178,610 201,841 $ 33.68

Employee Share Purchase Plan

2 unchanged sentences

Shares are purchased on the last day of the purchase period.

As of June 28, 2024, approximately 2.1 million ordinary shares remain available for purchase under the 2017 ESPP.

As of September 27, 2024, approximately 2.1 million ordinary shares remain available for purchase under the 2017 ESPP.

Note 10 – Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the numerator and denominator used in the calculation:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 28,

2024 June 30,

Three Months Ended Nine Months Ended

September 27,

2024 September 29,

2023 September 27,

2024 September 29,

Net loss $ ( 2,776 ) $ ( 10,425 ) $ ( 16,877 ) $ ( 31,086 )

17 unchanged sentences

The following table sets forth sales by geographic area:

Three Months Ended Six Months Ended

2024 June 30,

2023 June 28,

2024 June 30,

Three Months Ended Nine Months Ended

September 27,

2024 September 29,

2023 September 27,

2024 September 29,

United States of America $ 64,245 $ 64,529 $ 197,898 $ 215,204

3 unchanged sentences

Total net sales $ 211,139 $ 196,761 $ 615,749 $ 607,639

Foreign long-lived assets, exclusive of deferred tax assets, were $ 46.2 million and $ 48.2 million as of June 28, 2024 and December 29, 2023, respectively .

Foreign long-lived assets, exclusive of deferred tax assets, were $ 49.4 million and $ 48.2 million as of September 27, 2024 and December 29, 2023, respectively .

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