View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Aug. 05, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,332,064
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001113232
Amendment Flag	false

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Revenue	$ 74,305	$ 119,333	$ 165,782	$ 241,518
Cost of revenue:
Cost of revenue	42,556	70,333	96,527	145,362
Gross profit	31,749	49,000	69,255	96,156
Operating expenses:
Research and development	13,720	12,553	27,405	24,786
Sales and marketing	8,436	8,912	17,354	17,323
General and administrative	7,583	8,268	15,390	16,278
Total operating expenses	29,739	29,733	60,149	58,387
Income from operations	2,010	19,267	9,106	37,769
Other (expense) income:
Interest income	845	515	1,686	925
Interest expense	(1,311)	(1,127)	(2,541)	(2,464)
Other, net	(189)	(1,016)	(362)	(1,118)
Total other expense	(655)	(1,628)	(1,217)	(2,657)
Income before income taxes	1,355	17,639	7,889	35,112
Income tax provision	799	2,970	1,271	6,528
Net income	$ 556	$ 14,669	$ 6,618	$ 28,584
Net income per share:
Basic (in dollars per share)	$ 0.02	$ 0.46	$ 0.20	$ 0.89
Diluted (in dollars per share)	$ 0.02	$ 0.43	$ 0.19	$ 0.84
Shares used in computing net income per share:
Basic weighted average common shares	32,729	32,214	32,706	32,154
Diluted weighted average common shares	33,901	33,942	34,064	34,048
Product
Revenue:
Revenue	$ 68,714	$ 112,521	$ 152,911	$ 228,543
Cost of revenue:
Cost of revenue	37,188	63,913	84,518	132,287
Services
Revenue:
Revenue	5,591	6,812	12,871	12,975
Cost of revenue:
Cost of revenue	$ 5,368	$ 6,420	$ 12,009	$ 13,075

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 556	$ 14,669	$ 6,618	$ 28,584
Other comprehensive (loss):
Foreign currency translation adjustments	(219)	(2,321)	(714)	(1,300)
Amortization of actuarial loss and other adjustments from pension plan	29	30	59	60
Total other comprehensive (loss)	(190)	(2,291)	(655)	(1,240)
Comprehensive income	$ 366	$ 12,378	$ 5,963	$ 27,344

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 136,340	$ 177,993
Short-term restricted cash	149
Accounts receivable, net	62,279	78,727
Inventories, net	135,141	129,000
Prepaid expenses and other current assets	11,448	11,051
Total current assets	345,357	396,771
Property, plant and equipment, net	24,326	41,149
Operating lease assets	6,431
Finance lease assets, net	22,563
Long-term restricted cash	6,675	6,909
Deferred income taxes	70,598	71,939
Other assets	41,132	31,673
Total assets	517,082	548,441
Current liabilities:
Accounts payable	21,771	35,955
Accrued compensation	7,695	19,218
Warranty	4,045	4,819
Income taxes	329	462
Deferred revenue	10,176	19,513
Current portion of finance lease obligation	108
Other current liabilities	7,960	5,030
Total current liabilities	52,084	84,997
Finance lease obligation	48,441	47,757
Long-term deferred revenue	3,904	3,071
Other long-term liabilities	7,187	4,279
Total liabilities	111,616	140,104
Commitments and contingencies (Note 15)
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,297 shares issued and outstanding at June 30, 2019; 32,558 shares issued and outstanding at December 31, 2018	32	33
Additional paid-in capital	556,283	565,116
Accumulated deficit	(150,642)	(157,260)
Accumulated other comprehensive (loss) income	(207)	448
Total stockholders' equity	405,466	408,337
Total liabilities and stockholders' equity	$ 517,082	$ 548,441

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	32,297	32,558
Common stock, shares outstanding	32,297	32,558

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance (in shares) at Dec. 31, 2017	32,048
Balance at Dec. 31, 2017	$ 32	$ 556,147	$ (204,745)	$ 2,176	$ 353,610
Increase (Decrease) in Stockholders' Equity
Net income			13,915		13,915
Foreign currency translation adjustments				1,021	1,021
Change in pension obligation				30	30
Exercise of stock options (in shares)	75
Exercise of stock options		446			446
Issuance of restricted common shares (in shares)	19
Issuance of restricted common shares		(227)			(227)
Stock-based compensation expense		1,132			1,132
Balance (in shares) at Mar. 31, 2018	32,142
Balance at Mar. 31, 2018	$ 32	557,498	(189,230)	3,227	371,527
Balance (in shares) at Dec. 31, 2017	32,048
Balance at Dec. 31, 2017	$ 32	556,147	(204,745)	2,176	353,610
Increase (Decrease) in Stockholders' Equity
Net income					28,584
Foreign currency translation adjustments					(1,300)
Change in pension obligation					60
Balance (in shares) at Jun. 30, 2018	32,331
Balance at Jun. 30, 2018	$ 32	559,207	(174,561)	936	385,614
Increase (Decrease) in Stockholders' Equity
Adjustment to Retained Earnings upon ASC 606 Adoption			1,600		1,600
Balance (in shares) at Mar. 31, 2018	32,142
Balance at Mar. 31, 2018	$ 32	557,498	(189,230)	3,227	371,527
Increase (Decrease) in Stockholders' Equity
Net income			14,669		14,669
Foreign currency translation adjustments				(2,321)	(2,321)
Change in pension obligation				30	30
Exercise of stock options (in shares)	46
Exercise of stock options		376			376
Issuance of shares under Employee Stock Purchase Plan (in shares)	26
Issuance of shares under Employee Stock Purchase Plan		515			515
Issuance of restricted common shares (in shares)	117
Issuance of restricted common shares		(1,161)			(1,161)
Stock-based compensation expense		1,979			1,979
Balance (in shares) at Jun. 30, 2018	32,331
Balance at Jun. 30, 2018	$ 32	559,207	(174,561)	936	385,614
Balance (in shares) at Dec. 31, 2018	32,558
Balance at Dec. 31, 2018	$ 33	565,116	(157,260)	448	408,337
Increase (Decrease) in Stockholders' Equity
Net income			6,062		6,062
Foreign currency translation adjustments				(495)	(495)
Change in pension obligation				30	30
Exercise of stock options (in shares)	288
Exercise of stock options		1,828			1,828
Issuance of restricted common shares (in shares)	35
Issuance of restricted common shares		(281)			(281)
Stock-based compensation expense		1,672			1,672
Balance (in shares) at Mar. 31, 2019	32,881
Balance at Mar. 31, 2019	$ 33	568,335	(151,198)	(17)	417,153
Balance (in shares) at Dec. 31, 2018	32,558
Balance at Dec. 31, 2018	$ 33	565,116	(157,260)	448	408,337
Increase (Decrease) in Stockholders' Equity
Net income					6,618
Foreign currency translation adjustments					(714)
Change in pension obligation					59
Balance (in shares) at Jun. 30, 2019	32,297
Balance at Jun. 30, 2019	$ 32	556,283	(150,642)	(207)	405,466
Balance (in shares) at Mar. 31, 2019	32,881
Balance at Mar. 31, 2019	$ 33	568,335	(151,198)	(17)	417,153
Increase (Decrease) in Stockholders' Equity
Net income			556		556
Foreign currency translation adjustments				(219)	(219)
Change in pension obligation				29	29
Exercise of stock options (in shares)	104
Exercise of stock options		567			567
Issuance of shares under Employee Stock Purchase Plan (in shares)	32
Issuance of shares under Employee Stock Purchase Plan		479			479
Issuance of restricted common shares (in shares)	165
Issuance of restricted common shares		(1,310)			(1,310)
Stock-based compensation expense		2,246			2,246
Repurchase of common stock (in shares)	(885)
Repurchase of common stock	$ (1)	(14,034)			(14,035)
Balance (in shares) at Jun. 30, 2019	32,297
Balance at Jun. 30, 2019	$ 32	$ 556,283	$ (150,642)	$ (207)	$ 405,466

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 6,618	$ 28,584
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	3,600	2,776
Deferred income taxes	1,341	6,144
Stock-based compensation expense	3,989	3,188
Provision for excess and obsolete inventory	1,329	1,170
Changes in operating assets & liabilities:
Accounts receivable	16,346	530
Inventories	(11,161)	(9,330)
Prepaid expenses and other current assets	(433)	(1,272)
Accounts payable and other current liabilities	(21,559)	(8,032)
Deferred revenue	(8,498)	(1,358)
Income taxes	(129)	(104)
Other assets and liabilities	(11,769)	(6,956)
Net cash (used in) provided by operating activities	(20,326)	15,340
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software	(8,757)	(1,675)
Net cash used in investing activities	(8,757)	(1,675)
Cash flows from financing activities
Net settlement on restricted stock grants	(1,591)	(1,387)
Repurchase of common stock	(14,035)
Proceeds from Employee Stock Purchase Plan	407	437
Proceeds from exercise of stock options	2,396	822
Net cash used in financing activities	(12,823)	(128)
Effect of exchange rate changes on cash and cash equivalents	168	525
Net (decrease) increase in cash, cash equivalents and restricted cash	(41,738)	14,062
Cash, cash equivalents and restricted cash at beginning of period	184,902	140,880
Cash, cash equivalents and restricted cash at end of period	$ 143,164	$ 154,942

Nature of Business	6 Months Ended
Nature of Business	Jun. 30, 2019
Nature of Business
Nature of Business	Note 1. Nature of Business Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995, and is a producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for a fair presentation of these financial statements have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for other interim periods or for the year as a whole. The balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Axcelis Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018.

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2019
Stock-Based Compensation
Stock-Based Compensation	Note 2. Stock-Based Compensation We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “2012 Equity Plan”), which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units and performance awards to selected employees, directors and consultants of the Company. Our 2000 Stock Plan (the “2000 Stock Plan”) expired on May 1, 2012 and no new grants may be made under that plan after that date. However, unexpired awards granted under the 2000 Stock Plan remain outstanding and subject to the terms of the 2000 Stock Plan. We also maintain the Axcelis Technologies, Inc. Employee Stock Purchase Plan (the “ESPP”), an Internal Revenue Code Section 423 plan. The 2012 Equity Plan and the ESPP are more fully described in Note 13 to the consolidated financial statements in our 2018 Annual Report on Form 10-K. We recognized stock-based compensation expense of $2.3 million and $2.1 million for the three month periods ended June 30, 2019 and 2018, respectively. We recognized stock-based compensation expense of $4.0 million and $3.2 million for the six month periods ended June 30, 2019 and 2018, respectively. These amounts include compensation expense related to restricted stock units (“RSUs”), non-qualified stock options and stock to be issued to participants under the ESPP. In the three month periods ended June 30, 2019 and 2018, we issued 0.3 million and 0.2 million shares of common stock, respectively, upon stock option exercises, purchases under the ESPP and vesting of RSUs. In the three month periods ended June 30, 2019 and 2018, we received proceeds of $1.0 million and $0.9 million, respectively, in connection with the exercise of stock options and ESPP purchases. In the six month periods ended June 30, 2019 and 2018, we issued 0.6 million and 0.3 million shares of common stock, respectively, upon stock option exercises, purchases under the ESPP and vesting of RSUs. In the six month periods ended June 30, 2019 and 2018, we received proceeds of $2.8 million and $1.3 million, respectively, in connection with the exercise of stock options and ESPP purchases.

Leases

6 Months Ended

Jun. 30, 2019

Leases

Leases

Note 3. Leases

We have operating leases for office space, warehouse space, computer and office equipment and vehicles used in our business operations. We have a finance lease in relation to the 2015 sale-leaseback of our corporate headquarters in Beverly, Massachusetts. We review all contract agreements to determine if the agreement contains a lease component. An agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. We recognize the lease obligation on a discounted basis using the explicit or implicit discount rate stated within the agreement. For those lease agreements that do not indicate the applicable discount rate, we use the corporate borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated liability, and is adjusted for deferred costs and possible impairments, if any. We have made the following policy elections: (i) operating leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; (ii) we recognize lease expense for operating leases on a straight-line basis over the lease term; and (iii) we account for lease components and non-lease components that are fixed payments as one component. Some of our operating leases include one or more options to renew, with renewal terms that can extend the respective lease term 1 to 3 years. The exercise of lease renewal options are at our sole discretion. For lease extensions that are reasonably certain to occur, we have included these renewal periods in our calculation of the net present value of the lease obligation and related right-of-use asset. Certain leases also include options to purchase the leased property. The depreciable life of certain assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The amounts of operating and finance lease right-of-use assets and related lease obligations recorded within our consolidated balance sheet are as follows:


		June 30,
Leases	Classification	2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	6,431
Finance lease	Finance lease assets *		22,563
Total leased assets		$	28,994
Liabilities
Current
Operating	Other current liabilities	$	3,389
Finance	Other current liabilities		108
Noncurrent
Operating	Other long-term liabilities		3,020
Finance	Finance lease obligation		48,441
Total lease liabilities		$	54,958

* Finance lease assets are recorded net of accumulated depreciation of $47.0 million and include $0.8 million of prepaid financing costs as of June 30, 2019.

All of our office locations support selling and servicing functions. Lease expense, depreciation expense relating to finance leased assets and interest expense relating to our finance lease obligation recognized within our consolidated statement of operations for the three and six months ended June 30, 2019 are as follows:


		Three months ended			Six months ended
		June 30,			June 30,
Lease cost	Classification	2019		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	583	$	1,180
Research and development	Operating expenses		86		152
Sales and marketing*	Operating expenses		345		699
General and administrative*	Operating expenses		193		402
Total operating lease cost		$	1,207	$	2,433
Finance lease cost
Depreciation of leased assets	Cost of revenue, R&D, Sales and marketing and G&A	$	332	$	665
Interest on lease liabilities	Interest expense		1,311		2,541
Total finance lease cost		$	1,643	$	3,206

Total lease cost		$	2,850	$	5,639
* Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2019, respectively.

Our corporate headquarters facility, shown below under finance leases, has an original lease term of 22 years. All other locations are treated as operating leases, with lease terms ranging from 1 to 10 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 on our calculation of our lease obligations and right-of-use assets:


	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	2,802	$	1,894	$	4,696
2020		5,720		3,155		8,875
2021		5,848		1,453		7,301
2022		5,980		374		6,354
2023		6,114		44		6,158
Thereafter		85,905		21		85,926
Total lease payments	$	112,369	$	6,941	$	119,310
Less interest portion*		(63,820)		(532)		(64,352)
Finance lease and operating lease obligations	$	48,549	$	6,409	$	54,958
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.


	June 30,
Lease term and discount rate	2019
Weighted-average remaining lease term (years):
Operating leases		2.2
Finance leases		17.6
Weighted-average discount rate:
Operating leases		4.5%
Finance leases		10.5%

Our cash outflows from our operating leases include rent expense and other charges associated with these leases. These cash flows are included within the operating section of our statement of cash flows. Our cash flows from our finance lease currently include an interest only component and starting in April 2020, both an interest and payment of 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:


	Six months ended
	June 30,
Cash paid for amounts included in the measurement of lease liabilities	2019
	(in thousands)
Operating cash outflows from operating leases	$	2,433
Operating cash outflows from finance leases		2,792
Financing cash outflows from finance leases		—
Operating lease assets obtained in exchange for new operating lease liabilities		6,431
Finance lease assets obtained in exchange for new finance lease liabilities	$	—

Revenue

6 Months Ended

Jun. 30, 2019

Revenue.

Revenue

Note 4. Revenue

To reflect the organization of our business operations, we divide revenue into two categories: revenue from sales of new systems and revenue arising from the sale of used systems, parts and labor to customers who own systems, which we refer to as Aftermarket.

Revenue by categories used by management are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
Systems	$	37,224	$	73,919	$	94,316	$	159,395
Aftermarket		37,081		45,414		71,466		82,123
	$	74,305	$	119,333	$	165,782	$	241,518

Revenue by geographic markets is determined based upon the location of where our products are shipped and our services are performed. Revenue in our principal geographic markets is as follows:


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
North America	$	9,380	$	16,485	$	20,988	$	27,008
Asia Pacific		49,717		88,471		112,643		186,160
Europe		15,208		14,377		32,151		28,350
	$	74,305	$	119,333	$	165,782	$	241,518

Contract assets and contract liabilities are as follows:


	June 30,		December 31,
	2019		2018
	(in thousands)
Contract assets	$	—	$	—

Contract liabilities	$	14,080	$	22,584

Contract liabilities are reflected as deferred revenue on the consolidated balance sheet and relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations.


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
Balance, beginning of the period	$	20,481	$	18,522	$	22,584	$	18,145
Deferral of revenue		3,943		5,440		6,225		7,647
Recognition of deferred revenue		(10,344)		(8,787)		(14,729)		(10,617)
Balance, ending of the period	$	14,080	$	15,175	$	14,080	$	15,175

The majority of our system transactions have payment terms of 90% due upon shipment of the tool and 10% due upon installation. Aftermarket transaction payment terms are such that payment is due either within 30 or 60 days of service provided or delivery of parts.

Computation of Net Earnings per Share

6 Months Ended

Jun. 30, 2019

Computation of Net Earnings per Share

Computation of Net Earnings per Share

Note 5. Computation of Net Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted‑average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased by the number of additional common shares that would have been outstanding if the potentially dilutive common shares issuable for stock options and RSUs had been issued, calculated using the treasury stock method.

The components of net earnings per share are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands, except per share amounts)
Net income available to common stockholders	$	556	$	14,669	$	6,618	$	28,584
Weighted average common shares outstanding used in computing basic income per share		32,729		32,214		32,706		32,154
Incremental options and RSUs		1,172		1,728		1,358		1,894
Weighted average common shares used in computing diluted net income per share		33,901		33,942		34,064		34,048
Net income per share
Basic	$	0.02	$	0.46	$	0.20	$	0.89
Diluted	$	0.02	$	0.43	$	0.19	$	0.84

Diluted weighted average common shares outstanding does not include options and RSUs outstanding to purchase 0.2 million and 0.3 million common equivalent shares for the three month periods ended June 30, 2019 and 2018, respectively, nor options and RSUs outstanding to purchase ten thousand common equivalent shares for the six month periods ended June 30, 2019 and 2018, respectively, as their effect would have been anti-dilutive.

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Note 6. Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2019:


	Foreign		Defined benefit
	currency		pension plan		Total
	(in thousands)
Balance at December 31, 2018	$	962	$	(514)	$	448
Other comprehensive loss and pension reclassification		(715)		60		(655)
Balance at June 30, 2019	$	247	$	(454)	$	(207)

Cash, cash equivalents and restricted cash

6 Months Ended

Jun. 30, 2019

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash

Note 7. Cash, cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the amounts shown in the statement of cash flows.


	June 30,		December 31,
	2019			2018
	(in thousands)
Cash and cash equivalents	$	136,340	$	177,993
Short-term and long-term restricted cash		6,824		6,909
Total cash, cash equivalents and restricted cash	$	143,164	$	184,902

As of June 30, 2019, we had $6.8 million in restricted cash which relates to a $5.9 million letter of credit associated with a security deposit for the lease of our corporate headquarters in Beverly, Massachusetts, a $0.7 million letter of credit relating to workers’ compensation insurance, a bank guarantee of our performance relating to a customer payment in the amount of $0.1 million and a $0.1 million deposit relating to customs activity.

Inventories, net

6 Months Ended

Jun. 30, 2019

Inventories, net

Inventories, net

Note 8. Inventories, net

The components of inventories are as follows:


	June 30,		December 31,
	2019		2018
	(in thousands)
Raw materials	$	97,922	$	91,875
Work in process		22,807		23,857
Finished goods (completed systems)		14,412		13,268
Inventories, net	$	135,141	$	129,000

When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products or market conditions. We regularly evaluate the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure.

Product Warranty

6 Months Ended

Jun. 30, 2019

Product Warranty

Product Warranty

Note 9. Product Warranty

We generally offer a one year warranty for all of our systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary.

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


	Six months ended
	June 30,
	2019		2018
	(in thousands)
Balance at January 1 (beginning of year)	$	5,091	$	4,502
Warranties issued during the period		1,693		3,124
Settlements made during the period		(2,900)		(2,892)
Changes in estimate of liability for pre-existing warranties during the period		399		411
Balance at June 30 (end of period)	$	4,283	$	5,145

Amount classified as current	$	4,045	$	4,698
Amount classified as long-term		238		447
Total warranty liability	$	4,283	$	5,145

Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Measurements

Fair Value Measurements

Note 10. Fair Value Measurements

Certain assets on our balance sheets are reported at their fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

(a) Fair Value Hierarchy

The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

Level 1 - applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 - applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

(b) Fair Value Measurements

Our money market funds and short-term investments are included in cash and cash equivalents in the consolidated balance sheets.

The following table sets forth our assets by level within the fair value hierarchy:


	June 30, 2019
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds, U.S. Government Securities and Agency Investments	$	111,387	$	8,000	$	—	$	119,387


	December 31, 2018
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds, U.S. Government Securities and Agency Investments	$	138,510	$	21,700	$	—	$	160,210

The carrying amounts reflected in the consolidated balance sheets for accounts receivable, prepaid expenses and other current assets and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Financing Arrangements	6 Months Ended
Financing Arrangements	Jun. 30, 2019
Financing Arrangements
Financing Arrangements	Note 11. Financing Arrangements On January 30, 2015, we sold our corporate headquarters facility in Beverly Massachusetts for $48.9 million. 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 financing lease under generally accepted accounting principles and, as such, we have recorded a financing obligation of $48.5 million as of June 30, 2019. Our current lease payments are interest only payments. Commencing in April, 2020, the associated lease payments will include both an interest component and payment of principal, with the underlying liability being extinguished at the end of the original lease term. We posted a security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing. This letter of credit is cash collateralized and the associated cash is included in long-term restricted cash.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
Income Taxes
Income Taxes	Note 12. Income Taxes The income tax provision was $0.8 million during the three months ended June 30, 2019, a decrease of $2.2 million when compared to the three months ended June 30, 2018. The $2.2 million decrease was primarily due to a $3.4 million reduction in tax expense attributable to the decrease in pretax income of $16.3 million, partially offset by a $0.9 million increase in our valuation allowance relating to uncertainty regarding our utilization of research and development credits and $0.3 million of tax benefits relating to stock option exercises and RSU vesting. The income tax provision was $1.3 million during the six months ended June 30, 2019, a decrease of $5.3 million when compared to the six months ended June 30, 2018. Of the $5.3 million decrease, $5.7 million was attributable to the decrease in pretax income of $27.2 million, offset by $0.4 million primarily related to a decrease in the tax benefits relating to stock option exercises and RSU vesting. We have significant net operating loss carryforwards in the United States and certain European jurisdictions, and, as a result, we do not currently pay significant income taxes in those jurisdictions. Tax expense reflects the tax liability that would be payable without consideration of the usage of any net operating loss carryforwards. At December 31, 2018, we had $71.9 million of deferred tax assets worldwide comprised of net operating loss carryforwards, tax credit carryforwards and other temporary differences, which are available to reduce income tax liabilities in future years. This amount was net of a $6.8 million valuation allowance. As of June 30, 2019, the valuation allowance increased to $7.7 million due to the uncertainty of the utilization of certain research and development credits.

Concentration of Risk	6 Months Ended
Concentration of Risk	Jun. 30, 2019
Concentration of Risk
Concentration of Risk	Note 13. Concentration of Risk For the three months ended June 30, 2019, four customers accounted for 15.7%, 14.2%, 12.7% and 12.5% of total revenue, respectively. For the three months ended June 30, 2018, one customer accounted for 23.9% of total revenue. For the six months ended June 30, 2019, four customers accounted for 14.8%, 14.4%, 11.4% and 11.2% of total revenue, respectively. For the six months ended June 30, 2018, two customers accounted for 24.9% and 11.8% of total revenue, respectively. At June 30, 2019, three customers accounted for 20.2%, 14.3% and 12.2% of accounts receivable, respectively. At December 31, 2018, two customers accounted for 21.9% and 11.5% of accounts receivable, respectively.

Share Repurchase	6 Months Ended
Share Repurchase	Jun. 30, 2019
Share Repurchase
Share Repurchase	Note 14. Share Repurchase Under the current stock repurchase plan, announced on January 14, 2019, we are authorized to repurchase up to $35 million of our common stock through the end of 2019. During the six months ended June 30, 2019, we purchased 0.9 million shares at an average cost of $15.83 per share. The timing and actual number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Shares repurchased by us are accounted for when the transaction is settled. There were no unsettled share repurchases at June 30, 2019. Shares repurchased and retired are deducted from common stock for par value and from additional paid-in capital for the excess over par value. If additional paid-in capital has been exhausted, the excess over par value is deducted from retained earnings. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2019
Contingencies
Contingencies	Note 15. Contingencies (a) Litigation We are, from time to time, a party to litigation that arises in the normal course of our business operations. We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. (b) Indemnifications Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third-party claims of intellectual property infringement under specified conditions and to indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

Headcount-related Actions	6 Months Ended
Headcount-related Actions	Jun. 30, 2019
Headcount-related Actions
Headcount-related Actions	Note 16. Headcount-related Actions During the three months ended June 30, 2019, given the industry slowdown, we took steps to reduce expenses through a variety of programs. Headcount–related actions resulted in $1.0 million of additional expense in the quarter ended June 30, 2019. This expense was recorded as follows; $0.5 million to cost of revenue, $0.3 million to research and development and $0.1 million to both sales and marketing and general and administrative, respectively. As of June 30, 2019, all of these expenses remained accrued within current liabilities.

Recent Accounting Guidance

6 Months Ended

Jun. 30, 2019

Recent Accounting Guidance

Recent Accounting Guidance

Note 17. Recent Accounting Guidance

(a)

Accounting Standards Update 2016-02 on Leases Effective January 1, 2019

We adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases” and ASU No. 2018-11 “Leases (Topic 842)”, collectively (“Topic 842) as of January 1, 2019, using the modified retrospective approach, applying the new lease standard at the adoption date. We elected the package of practical expedients permitted under the transition guidance within the new standard, carrying forward the historical lease classification for both operating and finance leases. We made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize the lease expense relating to operating leases on a straight-line basis over the respective lease term and report the associated expense within the operating activities section of our statement of cash flows. We recognize the interest expense on our finance lease within the operating activities section of our statement of cash flows and recognize the payment of principal of our finance lease obligation within the financing activities section of our statement of cash flows.

The adoption of Topic 842 resulted in the recording of additional net operating lease assets and related lease liabilities of $7.5 million as of January 1, 2019. We also reclassified $22.1 million net, of previously capitalized property, plant and equipment associated with the sale of our corporate headquarters, as well as $0.8 million of prepaid transaction costs, as finance lease assets, within our balance sheet. The related finance lease liability associated with the sale-leaseback increased $0.8 million as a result of the reclassification of the prepaid transaction costs. The standard had no impact on our consolidated net earnings and cash flows.

(b)

Accounting Standards Update 2018-13 on Fair Value Measurements

We adopted ASU No. 2018-13 “Fair Value Measurement (Topic 820)” as of January 1, 2019, The amendments in ASU No. 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, removing disclosure requirements for transfers between Level 1 and Level 2 within the fair value hierarchy, as well as modifying the disclosure requirement relating to the timing of liquidation for investments calculated on net asset value. The ASU also requires the disclosure of unrealized gains and losses for the period included in other comprehensive income for Level 3 instruments. The amendments on changes for unrealized gains and losses should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The adoption of ASU 2018-13 did not have any impact on our consolidated financial statements and disclosures.

(c)

Accounting Standards Update 2019-04 on Financial Instruments; Topic 326, Topic 815 and Topic 825 to be Effective January 1, 2020

In April 2019, the Financial Accounting Standards Board issued ASU No. 2019-04 “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The amendments in this Update clarify the guidance within Topic 326 relating to credit losses. The guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted in any interim period after issuance of this Update as long as the entity has adopted the amendments in Update 2016-13. The amendments in these Updates should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position as of the date of adoption of Update 2016-13. The adoption of these Updates is not expected to have a material impact on our results of operations or cash flows.

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases

Schedule of operating and finance lease right-of-use assets and related lease obligations


		June 30,
Leases	Classification	2019
Assets		(in thousands)
Operating lease	Operating lease assets	$	6,431
Finance lease	Finance lease assets *		22,563
Total leased assets		$	28,994
Liabilities
Current
Operating	Other current liabilities	$	3,389
Finance	Other current liabilities		108
Noncurrent
Operating	Other long-term liabilities		3,020
Finance	Finance lease obligation		48,441
Total lease liabilities		$	54,958

* Finance lease assets are recorded net of accumulated depreciation of $47.0 million and include $0.8 million of prepaid financing costs as of June 30, 2019.

Schedule of lease costs


		Three months ended			Six months ended
		June 30,			June 30,
Lease cost	Classification	2019		2019
Operating lease cost		(in thousands)
Service	Cost of revenue	$	583	$	1,180
Research and development	Operating expenses		86		152
Sales and marketing*	Operating expenses		345		699
General and administrative*	Operating expenses		193		402
Total operating lease cost		$	1,207	$	2,433
Finance lease cost
Depreciation of leased assets	Cost of revenue, R&D, Sales and marketing and G&A	$	332	$	665
Interest on lease liabilities	Interest expense		1,311		2,541
Total finance lease cost		$	1,643	$	3,206

Total lease cost		$	2,850	$	5,639
* Sales and marketing, general and administrative expense includes short-term lease and variable lease costs of approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2019, respectively.

Schedule of future minimum operating leases


	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	2,802	$	1,894	$	4,696
2020		5,720		3,155		8,875
2021		5,848		1,453		7,301
2022		5,980		374		6,354
2023		6,114		44		6,158
Thereafter		85,905		21		85,926
Total lease payments	$	112,369	$	6,941	$	119,310
Less interest portion*		(63,820)		(532)		(64,352)
Finance lease and operating lease obligations	$	48,549	$	6,409	$	54,958
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.

Schedule of future minimum finance leases


	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2019	$	2,802	$	1,894	$	4,696
2020		5,720		3,155		8,875
2021		5,848		1,453		7,301
2022		5,980		374		6,354
2023		6,114		44		6,158
Thereafter		85,905		21		85,926
Total lease payments	$	112,369	$	6,941	$	119,310
Less interest portion*		(63,820)		(532)		(64,352)
Finance lease and operating lease obligations	$	48,549	$	6,409	$	54,958
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.

Schedule of weighted-average remaining lease term and discount rates


	June 30,
Lease term and discount rate	2019
Weighted-average remaining lease term (years):
Operating leases		2.2
Finance leases		17.6
Weighted-average discount rate:
Operating leases		4.5%
Finance leases		10.5%

Schedule of cash outflows by lease type


	Six months ended
	June 30,
Cash paid for amounts included in the measurement of lease liabilities	2019
	(in thousands)
Operating cash outflows from operating leases	$	2,433
Operating cash outflows from finance leases		2,792
Financing cash outflows from finance leases		—
Operating lease assets obtained in exchange for new operating lease liabilities		6,431
Finance lease assets obtained in exchange for new finance lease liabilities	$	—

Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Revenue.

Schedule of revenue by discipline


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
Systems	$	37,224	$	73,919	$	94,316	$	159,395
Aftermarket		37,081		45,414		71,466		82,123
	$	74,305	$	119,333	$	165,782	$	241,518

Schedule of revenue by geographic markets


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
North America	$	9,380	$	16,485	$	20,988	$	27,008
Asia Pacific		49,717		88,471		112,643		186,160
Europe		15,208		14,377		32,151		28,350
	$	74,305	$	119,333	$	165,782	$	241,518

Schedule of contract assets and contract liabilities


	June 30,		December 31,
	2019		2018
	(in thousands)
Contract assets	$	—	$	—

Contract liabilities	$	14,080	$	22,584


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands)
Balance, beginning of the period	$	20,481	$	18,522	$	22,584	$	18,145
Deferral of revenue		3,943		5,440		6,225		7,647
Recognition of deferred revenue		(10,344)		(8,787)		(14,729)		(10,617)
Balance, ending of the period	$	14,080	$	15,175	$	14,080	$	15,175

Computation of Net Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2019

Computation of Net Earnings per Share

Schedule of components of net income per share


	Three months ended				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
	(in thousands, except per share amounts)
Net income available to common stockholders	$	556	$	14,669	$	6,618	$	28,584
Weighted average common shares outstanding used in computing basic income per share		32,729		32,214		32,706		32,154
Incremental options and RSUs		1,172		1,728		1,358		1,894
Weighted average common shares used in computing diluted net income per share		33,901		33,942		34,064		34,048
Net income per share
Basic	$	0.02	$	0.46	$	0.20	$	0.89
Diluted	$	0.02	$	0.43	$	0.19	$	0.84

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Loss

Schedule of changes in accumulated other comprehensive income, net of tax


	Foreign		Defined benefit
	currency		pension plan		Total
	(in thousands)
Balance at December 31, 2018	$	962	$	(514)	$	448
Other comprehensive loss and pension reclassification		(715)		60		(655)
Balance at June 30, 2019	$	247	$	(454)	$	(207)

Cash, cash equivalents and restricted cash (Tables)

6 Months Ended

Jun. 30, 2019

Cash, cash equivalents and restricted cash

Schedule of reconciliation of cash, cash equivalents and restricted cash


	June 30,		December 31,
	2019			2018
	(in thousands)
Cash and cash equivalents	$	136,340	$	177,993
Short-term and long-term restricted cash		6,824		6,909
Total cash, cash equivalents and restricted cash	$	143,164	$	184,902

Inventories, net (Tables)

6 Months Ended

Jun. 30, 2019

Inventories, net

Schedule of components of inventories


	June 30,		December 31,
	2019		2018
	(in thousands)
Raw materials	$	97,922	$	91,875
Work in process		22,807		23,857
Finished goods (completed systems)		14,412		13,268
Inventories, net	$	135,141	$	129,000

Product Warranty (Tables)

6 Months Ended

Jun. 30, 2019

Product Warranty

Schedule of product warranty liability


	Six months ended
	June 30,
	2019		2018
	(in thousands)
Balance at January 1 (beginning of year)	$	5,091	$	4,502
Warranties issued during the period		1,693		3,124
Settlements made during the period		(2,900)		(2,892)
Changes in estimate of liability for pre-existing warranties during the period		399		411
Balance at June 30 (end of period)	$	4,283	$	5,145

Amount classified as current	$	4,045	$	4,698
Amount classified as long-term		238		447
Total warranty liability	$	4,283	$	5,145

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Measurements

Schedule of Company's assets and liabilities by level within the fair value hierarchy


	June 30, 2019
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds, U.S. Government Securities and Agency Investments	$	111,387	$	8,000	$	—	$	119,387


	December 31, 2018
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds, U.S. Government Securities and Agency Investments	$	138,510	$	21,700	$	—	$	160,210

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock-Based Compensation
Stock-based compensation expense	$ 2,300		$ 2,100		$ 4,000	$ 3,200
Proceeds from exercise of stock options					$ 2,396	$ 822
Common Stock
Stock-Based Compensation
Exercise of stock options (in shares)	104,000	288,000	46,000	75,000
Common Stock \| Employee stock purchase plan
Stock-Based Compensation
Exercise of stock options (in shares)	300,000		200,000		600,000	300,000
Proceeds from exercise of stock options	$ 1,000		$ 900		$ 2,800	$ 1,300
2000 Stock Plan
Stock-Based Compensation
Number of shares of common stock available for future grant	0				0

Leases (Details)	6 Months Ended
Leases (Details)	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Option to extend	true
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	3 years

Leases - Operating and Finance Lease Right-of-use-assets and Related Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases
Operating lease assets	$ 6,431
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease assets
Finance lease assets	$ 22,563
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance lease assets
Total leased assets	$ 28,994
Operating liabilities current	$ 3,389
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Finance liabilities current	$ 108
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Operating liabilities noncurrent	$ 3,020
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent
Finance liabilities noncurrent	$ 48,441	$ 47,757
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance liabilities noncurrent
Total lease liabilities	$ 54,958
Finance lease, accumulated depreciation	47,000
Prepaid financing costs	$ 800

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2019
Lease cost
Total operating lease cost	$ 1,207	$ 2,433
Depreciation of leased assets	332	665
Interest on lease liabilities	1,311	2,541
Total finance lease cost	1,643	3,206
Total lease cost	2,850	5,639
Short-term lease and variable lease costs	200	400
Service
Lease cost
Total operating lease cost	583	1,180
Research and development
Lease cost
Total operating lease cost	86	152
Sales and marketing
Lease cost
Total operating lease cost	345	699
General & administrative
Lease cost
Total operating lease cost	$ 193	$ 402

Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Future minimum lease payments finance lease
2019	$ 2,802
2020	5,720
2021	5,848
2022	5,980
2023	6,114
Thereafter	85,905
Total lease payments	112,369
Less interest portion	(63,820)
Finance lease obligations	48,549
Future minimum lease payments operating lease
2019	1,894
2020	3,155
2021	1,453
2022	374
2023	44
Thereafter	21
Total lease payments	6,941
Less interest portion	(532)
Operating lease obligations	6,409
Future minimum lease payments finance and operating lease
2019	4,696
2020	8,875
2021	7,301
2022	6,354
2023	6,158
Thereafter	85,926
Total lease payments	119,310
Less interest portion	(64,352)
Total lease liabilities	$ 54,958
Lease term and discount rate
Operating leases -Weighted-average remaining lease term (in years)	2 years 2 months 12 days
Finance leases - Weighted-average remaining lease term (in years)	17 years 7 months 6 days
Operating leases - Weighted-average discount rate	4.50%
Finance leases - Weighted-average discount rate	10.50%
Operating lease term	22 years
Minimum
Lease term and discount rate
Finance lease term	1 year
Maximum
Lease term and discount rate
Finance lease term	10 years

Leases - Cash Flow by Lease Type (Details) $ in Thousands	6 Months Ended
Leases - Cash Flow by Lease Type (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Leases
Operating cash outflows from operating leases	$ 2,433
Operating cash outflows from finance leases	2,792
Operating lease assets obtained in exchange for new operating lease liabilities	$ 6,431

Revenue - Revenue by discipline & geographical areas (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 74,305	$ 119,333	$ 165,782	$ 241,518
North America
Disaggregation of Revenue
Revenue	9,380	16,485	20,988	27,008
Asia Pacific
Disaggregation of Revenue
Revenue	49,717	88,471	112,643	186,160
Europe
Disaggregation of Revenue
Revenue	15,208	14,377	32,151	28,350
Systems
Disaggregation of Revenue
Revenue	37,224	73,919	94,316	159,395
Aftermarket
Disaggregation of Revenue
Revenue	$ 37,081	$ 45,414	$ 71,466	$ 82,123

Revenue - Contract assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Revenue.
Contract liabilities	$ 14,080	$ 20,481	$ 22,584	$ 15,175	$ 18,522	$ 18,145

Revenue - Contract liabilities recognized as revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue.
Balance, beginning of the period	$ 20,481	$ 18,522	$ 22,584	$ 18,145
Deferral of revenue	3,943	5,440	6,225	7,647
Recognition of deferred revenue	(10,344)	(8,787)	(14,729)	(10,617)
Balance, ending of the period	$ 14,080	$ 15,175	$ 14,080	$ 15,175

Revenue (Details) - Systems	6 Months Ended
Revenue (Details) - Systems	Jun. 30, 2019
Disaggregation of Revenue
Payment upon shipment of tool, as a percent	90.00%
Payment upon installation, as a percent	10.00%
Minimum
Disaggregation of Revenue
Payment upon delivery of parts, period	30 days
Maximum
Disaggregation of Revenue
Payment upon delivery of parts, period	60 days

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Computation of Net Earnings per Share
Net income available to common stockholders	$ 556	$ 6,062	$ 14,669	$ 13,915	$ 6,618	$ 28,584
Weighted average common shares outstanding used in computing basic income per share	32,729		32,214		32,706	32,154
Incremental options and RSUs	1,172		1,728		1,358	1,894
Weighted average common shares used in computing diluted net income per share	33,901		33,942		34,064	34,048
Net income per share
Basic	$ 0.02		$ 0.46		$ 0.20	$ 0.89
Diluted	$ 0.02		$ 0.43		$ 0.19	$ 0.84
Weighted average number diluted shares outstanding adjustment	200		300		10	10

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			$ 448
Other comprehensive loss and pension reclassification	$ (190)	$ (2,291)	(655)	$ (1,240)
Balance at June 30, 2019	(207)		(207)
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			962
Other comprehensive loss and pension reclassification			(715)
Balance at June 30, 2019	247		247
Defined benefit pension plan
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2018			(514)
Other comprehensive loss and pension reclassification			60
Balance at June 30, 2019	$ (454)		$ (454)

Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Cash and cash equivalents	$ 136,340	$ 177,993
Short-term and long-term restricted cash	6,824	6,909
Total cash, cash equivalents and restricted cash	143,164	$ 184,902	$ 154,942	$ 140,880
Letter of credit related to workers' compensation insurance	700
Letter of credit associated with bank guarantee two	100
Deposit related to customs activity	100
Revolving credit facility
Restricted cash which relates to support of outstanding letters of credit	6,800
Revolving credit facility \| Beverly Property Owner LLC
Letter of credit associated with security deposit for leaseback transaction	$ 5,900

Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventories, net
Raw materials	$ 97,922	$ 91,875
Work in process	22,807	23,857
Finished goods (completed systems)	14,412	13,268
Inventories, net	$ 135,141	$ 129,000

Product Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
Product Warranty (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Balance at January 1 (beginning of year)	$ 5,091	$ 4,502
Warranties issued during the period	1,693	3,124
Settlements made during the period	(2,900)	(2,892)
Changes in estimate of liability for pre-existing warranties during the period	399	411
Balance at June 30 (end of period)	4,283	5,145
Product warranty classification
Amount classified as current			$ 4,045	$ 4,819	$ 4,698
Amount classified as long-term			238		447
Total warranty liability	$ 5,091	$ 4,502	$ 4,283	$ 5,091	$ 5,145

Fair Value Measurements (Details) - Recurring - Money market funds, US Government Securities and Agency Investments - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 119,387	$ 160,210
Level 1
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	111,387	138,510
Level 2
Fair Value Measurements
Money market funds, U.S. Government Securities and Agency Investments	$ 8,000	$ 21,700

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Jun. 30, 2019	Dec. 31, 2018
Financing Arrangements
Lease term		22 years
Finance lease obligation		$ 48,441	$ 47,757
Beverly Property Owner LLC \| Buildings
Financing Arrangements
Finance lease obligation		48,500
Security deposit		$ 5,900
Beverly Property Owner LLC \| Sale leaseback obligation \| Buildings
Financing Arrangements
Sale price	$ 48,900
Lease term	22 years

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Taxes
Income tax provision	$ 799	$ 2,970	$ 1,271	$ 6,528
Decrease in income tax	2,200		5,300
Decrease in income tax due to decrease in pretax income	3,400		5,700
Decrease in pretax income	16,300		27,200
Increase in valuation allowance	900
Tax benefit	300		(400)
Deferred tax assets	70,598		70,598		$ 71,939
Deferred tax assets valuation allowance	$ 7,700		$ 7,700		$ 6,800

Concentration of Risk (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
Concentration of Risk (Details) - customer	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenue \| Customer concentration risk
Concentration of Risk
Number of customers	4	1	4	2
Revenue \| Customer concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk	15.70%	23.90%	14.80%	24.90%
Revenue \| Customer concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk	14.20%		14.40%	11.80%
Revenue \| Customer concentration risk \| Third customer
Concentration of Risk
Percentage of concentration risk	12.70%		11.40%
Revenue \| Customer concentration risk \| Fourth customer
Concentration of Risk
Percentage of concentration risk	12.50%		11.20%
Consolidated accounts receivable \| Credit concentration risk
Concentration of Risk
Number of customers			3		2
Consolidated accounts receivable \| Credit concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk			20.20%		21.90%
Consolidated accounts receivable \| Credit concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk			14.30%		11.50%
Consolidated accounts receivable \| Credit concentration risk \| Third customer
Concentration of Risk
Percentage of concentration risk			12.20%

Share Repurchase (Details) $ / shares in Units, shares in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Share Repurchase
Share repurchase program common stock authorized amount	$ 35,000,000
Number of shares purchased \| shares	0.9
Average cost \| $ / shares	$ 15.83
Unsettled share repurchases	$ 0

Headcount-related Actions (Details) $ in Millions	3 Months Ended
Headcount-related Actions (Details) $ in Millions	Jun. 30, 2019 USD ($)
Headcount-related actions
Headcount-related actions expenses	$ 1.0
Cost of revenue
Headcount-related actions
Headcount-related actions expenses	0.5
Research and development
Headcount-related actions
Headcount-related actions expenses	0.3
Sales and marketing and general and administrative
Headcount-related actions
Headcount-related actions expenses	$ 0.1

Recent Accounting Guidance (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Recent Accounting Guidance
Operating lease assets	$ 6,431
Lease liabilities	$ 6,409
ASU 2016-02 \| Adjustment
Recent Accounting Guidance
Operating lease assets		$ 7,500
Lease liabilities		7,500
Reclassification of previously capitalized property, plant and equipment		22,100
Reclassification of prepaid transaction costs as finance lease assets		800
Increase in finance lease liability associated with the sale-leaseback		$ 800