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Segment Reporting and Geographic Information
 9 Months Ended
Sep. 27, 2025
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

NOTE 15. Segment Reporting and Geographic Information

The Company is organized and operates as one operating and reportable segment; the design, development, manufacture and support of high-performance control metrology, defect inspection, lithography and data analysis systems used by microelectronics device manufacturers. This determination is based on the management approach which designates internal information regularly available to the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of determination of the Company’s reportable segments. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance.

The CODM uses net income as the measure of profit or loss to allocate resources and assess performance. The CODM regularly reviews net income as reported on the Company’s consolidated statements of operations. Financial forecasts and budget to actual results used by the CODM to assess performance and allocate resources, as well as those used for strategic decisions related to headcount and capital expenditures are also reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding whether to reinvest profits, propose share repurchase, or pursue strategic mergers and acquisitions.

The measure of segment assets is reported on the balance sheet as total assets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.

The table below presents the Company’s consolidated operating results including significant segment expenses:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 27,

 

 

September 28,

 

 

September 27,

 

 

September 28,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Revenue

 

$

218,193

 

 

$

252,210

 

 

$

738,397

 

 

$

723,382

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted cost of revenue (1)

 

 

100,267

 

 

 

114,712

 

 

 

335,289

 

 

 

337,802

 

Adjusted research and development (2)

 

 

32,492

 

 

 

28,199

 

 

 

96,505

 

 

 

81,639

 

Adjusted sales and marketing (2)

 

 

17,103

 

 

 

19,411

 

 

 

51,729

 

 

 

56,515

 

Adjusted general and administrative (3)

 

 

22,274

 

 

 

19,889

 

 

 

66,707

 

 

 

55,598

 

Other segment items:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other (4)

 

 

11,377

 

 

 

3,251

 

 

 

38,550

 

 

 

5,621

 

Merger and acquisitions related (4)

 

 

2,547

 

 

 

562

 

 

 

5,212

 

 

 

2,200

 

Litigation (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

27

 

Amortization

 

 

8,445

 

 

 

13,114

 

 

 

25,336

 

 

 

39,338

 

Operating income

 

 

23,688

 

 

 

53,072

 

 

 

119,069

 

 

 

144,642

 

Interest income, net

 

 

9,290

 

 

 

8,667

 

 

 

27,187

 

 

 

24,524

 

Other (expense) income, net

 

 

(999

)

 

 

(724

)

 

 

(2,879

)

 

 

10

 

Provision for income taxes

 

 

3,755

 

 

 

7,964

 

 

 

17,147

 

 

 

16,323

 

Net income

 

$

28,224

 

 

$

53,051

 

 

$

126,230

 

 

$

152,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes restructuring and other expenses and merger and acquisition related expenses

 

(2) Excludes merger and acquisition related expenses

 

(3) Excludes litigation expenses and merger and acquisition related expenses

 

(4) The Company excludes these expenses in order to provide better comparability between periods as they are not representative of the Company's ongoing operations.

 

Depreciation expense is a significant expense related to research and development expenses, sales and marketing expenses and general and administrative expenses as shown above. For the three and nine months ended September 27, 2025, depreciation expense was $5.0 million and $15.2 million, respectively. For the three and nine months ended September 28, 2024, depreciation expense was $3.9 million and $10.8 million, respectively.

The following table lists the different sources of revenue:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 27,

 

 

September 28,

 

 

September 27,

 

 

September 28,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands, except for percentages)

 

Systems and software

 

$

173,795

 

 

 

80

 %

 

$

217,135

 

 

 

86

 %

 

$

619,451

 

 

 

84

 %

 

$

622,400

 

 

 

86

 %

Parts

 

 

23,930

 

 

 

11

 %

 

 

19,995

 

 

 

8

 %

 

 

61,955

 

 

 

8

 %

 

 

56,890

 

 

 

8

 %

Services

 

 

20,468

 

 

 

9

 %

 

 

15,080

 

 

 

6

 %

 

 

56,991

 

 

 

8

 %

 

 

44,092

 

 

 

6

 %

Total revenue

 

$

218,193

 

 

 

100

 %

 

$

252,210

 

 

 

100

 %

 

$

738,397

 

 

 

100

 %

 

$

723,382

 

 

 

100

 %

 

The Company’s significant operations outside the United States include sales, service and application offices in Asia and Europe. For geographical revenue reporting, revenue is attributed to the geographic location to which the product is shipped. Revenue by geographic region is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 27,

 

 

September 28,

 

 

September 27,

 

 

September 28,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Revenue from third parties:

 

 

 

 

 

 

 

 

 

 

 

 

Taiwan

 

$

59,243

 

 

$

78,273

 

 

$

227,441

 

 

$

209,006

 

South Korea

 

 

44,864

 

 

 

77,014

 

 

 

220,828

 

 

 

227,958

 

United States

 

 

37,793

 

 

 

21,979

 

 

 

90,946

 

 

 

61,763

 

Japan

 

 

16,015

 

 

 

12,559

 

 

 

58,152

 

 

 

45,172

 

China

 

 

27,359

 

 

 

32,112

 

 

 

56,872

 

 

 

86,222

 

Southeast Asia

 

 

22,329

 

 

 

15,589

 

 

 

44,179

 

 

 

55,796

 

Europe

 

 

10,590

 

 

 

14,684

 

 

 

39,979

 

 

 

37,465

 

Total revenue

 

$

218,193

 

 

$

252,210

 

 

$

738,397

 

 

$

723,382

 

The following customers accounted for 10% or more of total revenue for the indicated periods:

 

 

Nine Months Ended

 

 

 

September 27,

 

 

September 28,

 

 

 

2025

 

 

2024

 

Customer A

 

 

21

%

 

 

19

%

Customer B

 

 

18

%

 

 

20

%

Customer C

 

 

14

%

 

 

13

%

Three customers’ net accounts receivable balances were individually greater than 10% of net accounts receivable at September 27, 2025, representing, in the aggregate approximately 46% of the Company’s total net accounts receivable.

Two customers’ net accounts receivable balances were individually greater than 10% of net accounts receivable at December 28, 2024, representing, in the aggregate, approximately 47% of the Company’s total net accounts receivable.

Substantially all of the Company’s long-lived assets are located within the United States of America.