0001558370-23-017452 | 10-Q | XBRL Viewer

Leases

9 Months Ended

Sep. 30, 2023

Note 3. Leases

We have operating leases for manufacturing, 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 agreements to determine if the agreement contains a lease

component. An agreement contains a lease component if it provides for the use of a specific physical space or a specific physical item.

We recognize operating lease obligations under Accounting Standards Codification Topic 842, Leases (“Topic 842”). The guidance in Topic 842 requires recognition of lease assets and related liabilities on a discounted basis using the explicit or implicit discount rate stated within the agreement. We recognize a corresponding right-of-use asset, which is initially determined based upon the net present value of the associated liability and is adjusted for deferred costs and possible impairment, if any. For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. 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 by one to three years. The exercise of lease renewal options is at our sole discretion. For lease extensions that are reasonably certain to occur, we have included the 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 is 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 sheets are as follows:


		September 30,		December 31,
Leases	Classification	2023		2022

Assets		(in thousands)
Operating leases	Operating lease assets	$	31,082	$	12,146
Finance lease	Finance lease assets*		16,981		17,942
Total leased assets		$	48,063	$	30,088
Liabilities
Current
Operating	Other current liabilities	$	5,001	$	5,367
Finance	Current portion of finance lease obligation		1,438		1,229
Non-current
Operating	Other long-term liabilities		25,850		6,931
Finance	Finance lease obligation		44,070		45,185
Total lease liabilities		$	76,359	$	58,712

*Finance lease assets are recorded net of accumulated depreciation of $46.7 million and include $0.6 million of prepaid financing costs as of September 30, 2023. Finance lease assets are recorded net of accumulated depreciation of $45.9 million and include $0.6 million of prepaid financing costs as of December 31, 2022.

All of our operating lease office locations support selling and servicing functions. Our Axcelis Asia Operations Center facility in South Korea brings production capability closer to our Asia-based customers. Our state-of-the-art 98,500 square foot logistics and flex manufacturing center in Beverly, Massachusetts became fully operational in the third quarter of 2023.

Operating lease expense and depreciation and interest expense relating to our finance lease obligation are recognized within our consolidated statement of operations for the three and nine months ended September 30, 2023 and 2022 as follows:


		Three months ended				Nine months ended
		September 30,				September 30,
Lease cost	Classification	2023		2022		2023		2022

Operating lease cost		(in thousands)
Product / services*	Cost of revenue	$	2,041	$	1,462	$	5,328	$	3,978
Research and development	Operating expenses		183		54		426		186
Sales and marketing*	Operating expenses		419		369		1,231		1,155
General and administrative*	Operating expenses		298		253		813		773
Total operating lease cost		$	2,941	$	2,138	$	7,798	$	6,092
Finance lease cost
Depreciation of leased assets	Cost of revenue, Research and development, Sales and marketing and General and administrative	$	324	$	325	$	961	$	973
Interest on lease liabilities	Interest expense		1,214		1,245		3,668		3,754
Total finance lease cost		$	1,538	$	1,570	$	4,629	$	4,727

Total lease cost		$	4,479	$	3,708	$	12,427	$	10,819

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.6 million and $1.6 million for the three and nine months ended September 30, 2023, respectively, and includes short-term lease and variable lease costs of approximately $0.4 million and $1.4 million for the three and nine months ended September 30, 2022, respectively.

The lease of our corporate headquarters, shown below under finance leases, had an original lease term of 22 years, beginning in January 2015 and expiring in January 2037, with renewal options. All other locations are treated as operating leases, with lease terms ranging from one to sixteen 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 in our calculation of our lease obligations and right-of-use assets as of September 30, 2023:


	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases

	(in thousands)
2023	$	1,531	$	2,117	$	3,648
2024		6,252		6,248		12,500
2025		5,930		4,761		10,691
2026		6,008		3,471		9,479
2027		6,128		2,502		8,630
Thereafter		61,586		25,123		86,709
Total lease payments	$	87,435	$	44,222	$	131,657
Less interest portion*		(41,927)		(13,371)		(55,298)
Finance lease and operating lease obligations	$	45,508	$	30,851	$	76,359

* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.

The table above does not include options to renew lease terms that are not reasonably certain of being exercised.


	September 30,
Lease term and discount rate	2023
Weighted-average remaining lease term (years):
Operating leases		11.6
Finance leases		13.3
Weighted-average discount rate:
Operating leases		5.5%
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 activities section of our statement of cash flows. Our cash flows from our finance lease include both an interest component and a 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 for the nine months ended September 30, 2023 and 2022, respectively:



	Nine months ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	2023		2022

	(in thousands)
Operating cash outflows from operating leases	$	7,798	$	6,092
Operating cash outflows from finance leases		3,668		3,754
Financing cash outflows from finance leases		915		728
Operating lease assets obtained in exchange for operating lease liabilities		25,697		5,494
Finance lease assets obtained in exchange for new finance lease liabilities		—		—

Product Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
Product Warranty (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Jan. 01, 2023	Dec. 31, 2022	Jan. 01, 2022
Product Warranty
Product warranty period	1 year
Changes in standard product warranty liability
Warranties issued during the period	$ 9,072	$ 7,454
Settlements made during the period	(7,746)	(4,633)
Changes in estimate of liability for pre-existing warranties during the period	2,043	(78)
Balance at September 30 (end of period)	13,856	9,667
Product warranty classification
Amount classified as current	11,464	8,482		$ 8,299
Amount classified as long-term (within other long-term liabilities)	2,392	1,185
Total warranty liability	$ 13,856	$ 9,667	$ 10,487		$ 6,924

Leases - Cash Flow by Lease Type (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating cash outflows from operating leases	$ 7,798	$ 6,092
Operating cash outflows from finance leases	3,668	3,754
Financing cash outflows from finance leases	915	728
Operating lease assets obtained in exchange for operating lease liabilities	$ 25,697	$ 5,494

Receivables and Allowances for Credit Losses	9 Months Ended
Sep. 30, 2023
Receivables and Allowances for Credit Losses
Receivables and Allowances for Credit Losses	Note 5. Receivables and Allowances for Credit Losses All trade receivables are reported on the consolidated balance sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. We maintain an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of our receivables, considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of our ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in our receivable portfolio. We use historical loss experience rates and apply them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. We evaluate the credit risk of the customer when extending credit based on a combination of financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau report, as well as the value of the underlying collateral. Management performs detailed reviews of our receivables on a quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. We recorded $0.7 million in bad debt expense for the three and nine-month periods ended September 30, 2023. We did not have any allowance or incur any credit losses or recoveries for the three and nine-month periods ended September 30, 2022. As of September 30, 2023 and 2022, respectively, we had no provision for credit losses.

Receivables and Allowances for Credit Losses

9 Months Ended

Sep. 30, 2023

Receivables and Allowances for Credit Losses

Receivables and Allowances for Credit Losses

Note 5. Receivables and Allowances for Credit Losses

All trade receivables are reported on the consolidated balance sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses.

We maintain an allowance for credit losses, which represents an estimate of expected losses over the remaining contractual life of our receivables, considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of our ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in our receivable portfolio. We use historical loss experience rates and apply them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss

experience, loss migration, delinquency trends, collection experience, current economic conditions, trade restrictions, estimates for supportable forecasts, when appropriate, and credit risk characteristics.

We evaluate the credit risk of the customer when extending credit based on a combination of financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau report, as well as the value of the underlying collateral.

Management performs detailed reviews of our receivables on a quarterly basis to assess the adequacy of the allowances and to determine if any impairment has occurred. Amounts determined to be uncollectable are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. Changes to the allowances for credit losses are maintained through adjustments to the provision for credit losses, which are charged to current period earnings. We recorded $0.7 million in bad debt expense for the three and nine-month periods ended September 30, 2023. We did not have any allowance or incur any credit losses or recoveries for the three and nine-month periods ended September 30, 2022. As of September 30, 2023 and 2022, respectively, we had no provision for credit losses.

Stock-Based Compensation	9 Months Ended
Sep. 30, 2023
Stock-Based Compensation
Stock-Based Compensation	Note 2. Stock-Based Compensation We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan, as amended (the “2012 Equity Plan”), an Internal Revenue Code Section 423 plan, which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units (“RSUs”) and performance awards to selected employees, directors and consultants of the Company. The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022. We recognized stock-based compensation expense of $5.1 million and $3.6 million for the three-month periods ended September 30, 2023 and 2022, respectively. We recognized stock-based compensation expense of $13.0 million and $9.8 million for the nine-month periods ended September 30, 2023 and 2022, respectively. These amounts include compensation expense related to RSUs, non-qualified stock options and stock issued to participants under the 2020 Employee Stock Purchase Plan (the “2020 ESPP”). In the three-month period ended September 30, 2023, we issued 7,320 shares of common stock upon vesting of RSUs. In the three-month period ended September 30, 2022, we issued 38,507 shares of common stock upon vesting of RSUs and stock option exercises. In the three-month period ended September 30, 2023, we received no proceeds in connection with the exercise of stock options. In the three-month period ended September 30, 2022, we received proceeds of $0.4 million in connection with the exercise of stock options. In the nine-month periods ended September 30, 2023 and 2022, we issued 0.3 million and 0.4 million shares of common stock, respectively, upon stock option exercises, purchases under the 2020 ESPP and vesting of RSUs. In the nine-month periods ended September 30, 2023 and 2022, we received proceeds of $1.0 million and $1.9 million, respectively, in connection with the exercise of stock options and purchases under the 2020 ESPP.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Stock-Based Compensation

Stock-Based Compensation

Note 2. Stock-Based Compensation

We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan, as amended (the “2012 Equity Plan”), an Internal Revenue Code Section 423 plan, which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units (“RSUs”) and performance awards to selected employees, directors and consultants of the Company.

The 2012 Equity Plan is more fully described in Note 13 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

We recognized stock-based compensation expense of $5.1 million and $3.6 million for the three-month periods ended September 30, 2023 and 2022, respectively. We recognized stock-based compensation expense of $13.0 million and $9.8 million for the nine-month periods ended September 30, 2023 and 2022, respectively. These amounts include compensation expense related to RSUs, non-qualified stock options and stock issued to participants under the 2020 Employee Stock Purchase Plan (the “2020 ESPP”).

In the three-month period ended September 30, 2023, we issued 7,320 shares of common stock upon vesting of RSUs. In the three-month period ended September 30, 2022, we issued 38,507 shares of common stock upon vesting of RSUs and stock option exercises. In the three-month period ended September 30, 2023, we received no proceeds in connection with the exercise of stock options. In the three-month period ended September 30, 2022, we received proceeds of $0.4 million in connection with the exercise of stock options.

In the nine-month periods ended September 30, 2023 and 2022, we issued 0.3 million and 0.4 million shares of common stock, respectively, upon stock option exercises, purchases under the 2020 ESPP and vesting of RSUs. In the nine-month periods ended September 30, 2023 and 2022, we received proceeds of $1.0 million and $1.9 million, respectively, in connection with the exercise of stock options and purchases under the 2020 ESPP.

Revenue - Contract liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Revenue
Contract liabilities	$ 202,029	$ 182,540	$ 154,777	$ 122,589	$ 71,549	$ 68,436

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, 2021	33,240
Balance at Dec. 31, 2021	$ 33	$ 559,883	$ (22,722)	$ 1,765	$ 538,959
Increase (Decrease) in Stockholders' Equity
Net income			41,614		41,614
Foreign currency translation adjustments				(1,186)	(1,186)
Change in pension obligation				9	9
Exercise of stock options (in shares)	41
Exercise of stock options		491			491
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	67
Issuance of common stock on restricted stock units, net of shares withheld		(3,315)			(3,315)
Stock-based compensation expense		2,701			2,701
Repurchase of common stock (in shares)	(284)
Repurchase of common stock		(5,127)	(14,873)		(20,000)
Balance (in shares) at Mar. 31, 2022	33,064
Balance at Mar. 31, 2022	$ 33	554,633	4,019	588	559,273
Balance (in shares) at Dec. 31, 2021	33,240
Balance at Dec. 31, 2021	$ 33	559,883	(22,722)	1,765	538,959
Increase (Decrease) in Stockholders' Equity
Net income					126,087
Foreign currency translation adjustments					(7,561)
Change in pension obligation					25
Balance (in shares) at Sep. 30, 2022	32,937
Balance at Sep. 30, 2022	$ 33	549,735	70,893	(5,771)	614,890
Balance (in shares) at Mar. 31, 2022	33,064
Balance at Mar. 31, 2022	$ 33	554,633	4,019	588	559,273
Increase (Decrease) in Stockholders' Equity
Net income			44,189		44,189
Foreign currency translation adjustments				(2,685)	(2,685)
Change in pension obligation				8	8
Exercise of stock options (in shares)	25
Exercise of stock options		298			298
Issuance of stock under Employee Stock Purchase Plan (in shares)	15
Issuance of stock under Employee Stock Purchase Plan		711			711
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	205
Issuance of common stock on restricted stock units, net of shares withheld		(5,896)			(5,896)
Stock-based compensation expense		3,527			3,527
Repurchase of common stock (in shares)	(215)
Repurchase of common stock		(3,872)	(8,626)		(12,498)
Balance (in shares) at Jun. 30, 2022	33,094
Balance at Jun. 30, 2022	$ 33	549,401	39,582	(2,089)	586,927
Increase (Decrease) in Stockholders' Equity
Net income			40,283		40,283
Foreign currency translation adjustments				(3,690)	(3,690)
Change in pension obligation				8	8
Exercise of stock options (in shares)	30
Exercise of stock options		367			367
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	8
Issuance of common stock on restricted stock units, net of shares withheld		(70)			(70)
Stock-based compensation expense		3,562			3,562
Repurchase of common stock (in shares)	(195)
Repurchase of common stock		(3,525)	(8,972)		(12,497)
Balance (in shares) at Sep. 30, 2022	32,937
Balance at Sep. 30, 2022	$ 33	549,735	70,893	(5,771)	614,890
Balance (in shares) at Dec. 31, 2022	32,775
Balance at Dec. 31, 2022	$ 33	550,299	118,892	(1,968)	667,256
Increase (Decrease) in Stockholders' Equity
Net income			47,697		47,697
Foreign currency translation adjustments				50	50
Exercise of stock options (in shares)	2
Exercise of stock options		25			25
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	56
Issuance of common stock on restricted stock units, net of shares withheld		(3,907)			(3,907)
Stock-based compensation expense		3,199			3,199
Repurchase of common stock (in shares)	(107)
Repurchase of common stock		(1,924)	(10,575)		(12,499)
Balance (in shares) at Mar. 31, 2023	32,726
Balance at Mar. 31, 2023	$ 33	547,692	156,014	(1,918)	701,821
Balance (in shares) at Dec. 31, 2022	32,775
Balance at Dec. 31, 2022	$ 33	550,299	118,892	(1,968)	667,256
Increase (Decrease) in Stockholders' Equity
Net income					175,207
Foreign currency translation adjustments					(2,192)
Balance (in shares) at Sep. 30, 2023	32,772
Balance at Sep. 30, 2023	$ 33	543,577	261,521	(4,160)	800,971
Balance (in shares) at Mar. 31, 2023	32,726
Balance at Mar. 31, 2023	$ 33	547,692	156,014	(1,918)	701,821
Increase (Decrease) in Stockholders' Equity
Net income			61,579		61,579
Foreign currency translation adjustments				(1,011)	(1,011)
Issuance of stock under Employee Stock Purchase Plan (in shares)	6
Issuance of stock under Employee Stock Purchase Plan		957			957
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	199
Issuance of common stock on restricted stock units, net of shares withheld		(11,558)			(11,558)
Stock-based compensation expense		4,749			4,749
Repurchase of common stock (in shares)	(95)
Repurchase of common stock		(1,720)	(10,780)		(12,500)
Balance (in shares) at Jun. 30, 2023	32,836
Balance at Jun. 30, 2023	$ 33	540,120	206,813	(2,929)	744,037
Increase (Decrease) in Stockholders' Equity
Net income			65,931		65,931
Foreign currency translation adjustments				(1,231)	(1,231)
Issuance of common stock on restricted stock units, net of shares withheld (in shares)	7
Issuance of common stock on restricted stock units, net of shares withheld		(349)			(349)
Stock-based compensation expense		5,082			5,082
Repurchase of common stock (in shares)	(71)
Repurchase of common stock		(1,276)	(11,223)		(12,499)
Balance (in shares) at Sep. 30, 2023	32,772
Balance at Sep. 30, 2023	$ 33	$ 543,577	$ 261,521	$ (4,160)	$ 800,971

Revenue

9 Months Ended

Sep. 30, 2023

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				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
Systems	$	231,454	$	171,092	$	641,825	$	488,243
Aftermarket		60,872		58,083		178,491		165,704
Total Revenue	$	292,326	$	229,175	$	820,316	$	653,947

We also consider revenue by geography. Revenue is allocated to geographic markets based upon the location to which our products are shipped and in which our services are performed. Revenue in our principal geographic markets is as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
North America	$	51,563	$	36,036	$	134,647	$	95,633
Asia Pacific		185,194		166,342		582,238		484,286
Europe		55,569		26,797		103,431		74,028
Total Revenue	$	292,326	$	229,175	$	820,316	$	653,947

Our system sales revenue transactions give rise to contract liabilities (in the case of pre-payments and the fair value of goods and services to be delivered after the system delivery, such as installation and certain warranty obligations).

Contract liabilities are as follows:


	September 30,		December 31,
	2023		2022

	(in thousands)
Contract liabilities	$	202,029	$	154,777

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				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
Balance, beginning of the period	$	182,540	$	71,549	$	154,777	$	68,436
Deferral of revenue		62,787		70,706		154,216		108,472
Recognition of deferred revenue		(43,298)		(19,666)		(106,964)		(54,319)
Balance, end of the period	$	202,029	$	122,589	$	202,029	$	122,589

The majority of our system transactions have either (1) payment terms of 90% due upon shipment of the system and 10% due upon acceptance or (2) a pre-shipment deposit ranging from 20% to 60%, 70% to 30% due upon shipment and 10% at acceptance. Aftermarket transaction payment terms typically provide that payment is due either within 30 or 60 days after the service is provided or parts delivered.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
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+ Details

Computation of Net Earnings per Share

9 Months Ended

Sep. 30, 2023

Computation of Net Earnings per Share

Computation of Net Earnings per Share

Note 6. 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 shares of common stock 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 shares of common stock that would have been outstanding if the potentially dilutive shares of common stock issuable on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method.

The components of net earnings per share are as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands, except per share amounts)
Net income available to common stockholders	$	65,931	$	40,283	$	175,207	$	126,087
Weighted average shares of common stock outstanding used in computing basic income per share		32,807		33,011		32,775		33,116
Incremental options and RSUs		352		378		433		522
Weighted average shares of common stock used in computing diluted net income per share		33,159		33,389		33,208		33,638
Net income per share
Basic	$	2.01	$	1.22	$	5.35	$	3.81
Diluted	$	1.99	$	1.21	$	5.28	$	3.75

Diluted weighted average shares of common stock outstanding does not include 734 and 5,046 common equivalent shares issuable with respect to outstanding equity awards for the three-month periods ended September 30, 2023 and 2022, respectively, or 2,598 and 6,692 common equivalent shares issuable with respect to outstanding equity awards for the nine-month periods ended September 30, 2023 and 2022, respectively, as their effect would have been anti-dilutive.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Consolidated Statements of Comprehensive Income
Net income	$ 65,931	$ 40,283	$ 175,207	$ 126,087
Other comprehensive loss:
Foreign currency translation adjustments	(1,231)	(3,690)	(2,192)	(7,561)
Amortization of actuarial net gain and other adjustments from pension plan, net of tax		8		25
Total other comprehensive loss	(1,231)	(3,682)	(2,192)	(7,536)
Comprehensive income	$ 64,700	$ 36,601	$ 173,015	$ 118,551

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Product Warranty (Tables)

9 Months Ended

Sep. 30, 2023

Product Warranty

Schedule of product warranty liability


	Nine months ended
	September 30,
	2023		2022

	(in thousands)
Balance at January 1 (beginning of year)	$	10,487	$	6,924
Warranties issued during the period		9,072		7,454
Settlements made during the period		(7,746)		(4,633)
Changes in estimate of liability for pre-existing warranties during the period		2,043		(78)
Balance at September 30 (end of period)	$	13,856	$	9,667

Amount classified as current	$	11,464	$	8,482
Amount classified as long-term (within other long-term liabilities)		2,392		1,185
Total warranty liability	$	13,856	$	9,667

Leases (Details)	9 Months Ended
Leases (Details)	Sep. 30, 2023
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

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net income	$ 175,207	$ 126,087
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,488	8,614
Deferred income taxes	(12,623)	6,416
Stock-based compensation expense	13,030	9,790
Provision for doubtful accounts	749
Provision for excess and obsolete inventory	3,912	3,292
Accretion of discounts and premiums on marketable securities	(8,463)
Currency loss on foreign denominated transactions	7,487
Changes in operating assets and liabilities:
Accounts receivable	(26,674)	(77,449)
Inventories	(79,494)	(49,699)
Prepaid expenses and other current assets	(16,493)	(4,861)
Accounts payable and other current liabilities	(8,916)	17,695
Deferred revenue	47,704	54,814
Income taxes	(3,672)	(274)
Other assets and liabilities	(9,948)	(1,202)
Net cash provided by operating activities	91,294	93,223
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software	(10,503)	(6,876)
Purchase of short-term investments	(271,583)	(33,576)
Maturities of short-term investments	207,907
Net cash used in investing activities	(74,179)	(40,452)
Cash flows from financing activities
Net settlement on restricted stock grants	(15,814)	(9,281)
Repurchase of common stock	(37,498)	(44,995)
Proceeds from Employee Stock Purchase Plan purchases	957	711
Principal payments on finance lease obligation	(915)	(728)
Proceeds from exercise of stock options	25	1,156
Net cash used in financing activities	(53,245)	(53,137)
Effect of exchange rate changes on cash and cash equivalents	(1,267)	13,987
Net (decrease) increase in cash, cash equivalents and restricted cash	(37,397)	13,621
Cash, cash equivalents and restricted cash at beginning of period	186,347	295,680
Cash, cash equivalents and restricted cash at end of period	$ 148,950	$ 309,301

Inventories, net

9 Months Ended

Sep. 30, 2023

Inventories, net

Inventories, net

Note 9. Inventories, net

The components of inventories are as follows:


	September 30,		December 31,
	2023		2022

	(in thousands)
Raw materials	$	226,601	$	187,313
Work in process		55,825		35,069
Finished goods (completed systems)		29,797		20,024
Inventories, net	$	312,223	$	242,406

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.

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

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


	September 30, 2023
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total

	(in thousands)
Assets
Cash equivalents and other short-term investments:
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	$	114,475	$	—	$	—	$	114,475
Short-term investments (U.S. Government Securities and Agency Investments)		318,202		—		—		318,202
Total	$	432,677	$	—	$	—	$	432,677


	December 31, 2022
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total

	(in thousands)
Assets
Cash equivalents and other short-term investments:
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	$	111,771	$	25,000	$	—	$	136,771
Short-term investments (U.S. Government Securities and Agency Investments)		245,247		—		—		245,247
Total	$	357,018	$	25,000	$	—	$	382,018

Leases - Operating and Finance Lease Right-of-use-assets and Related Lease Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases
Operating lease assets	$ 31,082	$ 12,146
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease assets	Operating lease assets
Finance lease assets	$ 16,981	$ 17,942
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance lease assets	Finance lease assets
Total leased assets	$ 48,063	$ 30,088
Operating liabilities current	$ 5,001	$ 5,367
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current	Other Liabilities, Current
Finance liabilities current	$ 1,438	$ 1,229
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Finance liabilities current	Finance liabilities current
Operating liabilities noncurrent	$ 25,850	$ 6,931
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Finance liabilities noncurrent	$ 44,070	$ 45,185
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance liabilities noncurrent	Finance liabilities noncurrent
Total lease liabilities	$ 76,359	$ 58,712
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities, Current, Other Liabilities, Noncurrent	Other Liabilities, Current, Other Liabilities, Noncurrent
Finance lease, accumulated depreciation	$ 46,700	$ 45,900
Prepaid financing costs	$ 600	$ 600

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 31, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Entity File Number	000-30941
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	34-1818596
Entity Address, Address Line One	108 Cherry Hill Drive
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	787-4000
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ACLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,747,459
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001113232
Amendment Flag	false

Contingencies

9 Months Ended

Sep. 30, 2023

Contingencies

Contingencies

Note 16. 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 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.

Revenue - Revenue by discipline & geographical areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue
Total Revenue	$ 292,326	$ 229,175	$ 820,316	$ 653,947
North America
Disaggregation of Revenue
Total Revenue	51,563	36,036	134,647	95,633
Asia Pacific
Disaggregation of Revenue
Total Revenue	185,194	166,342	582,238	484,286
Europe
Disaggregation of Revenue
Total Revenue	55,569	26,797	103,431	74,028
Systems
Disaggregation of Revenue
Total Revenue	231,454	171,092	641,825	488,243
Aftermarket
Disaggregation of Revenue
Total Revenue	$ 60,872	$ 58,083	$ 178,491	$ 165,704

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Product Warranty

9 Months Ended

Sep. 30, 2023

Product Warranty

Product Warranty

Note 10. 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:


	Nine months ended
	September 30,
	2023		2022

	(in thousands)
Balance at January 1 (beginning of year)	$	10,487	$	6,924
Warranties issued during the period		9,072		7,454
Settlements made during the period		(7,746)		(4,633)
Changes in estimate of liability for pre-existing warranties during the period		2,043		(78)
Balance at September 30 (end of period)	$	13,856	$	9,667

Amount classified as current	$	11,464	$	8,482
Amount classified as long-term (within other long-term liabilities)		2,392		1,185
Total warranty liability	$	13,856	$	9,667

Financing Arrangements

9 Months Ended

Sep. 30, 2023

Financing Arrangements

Financing Arrangements

Note 12. 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 $45.5 million as of September 30, 2023. The associated lease payments include both an interest component and payment of principal, with the remaining liability being extinguished at the end of the original lease term. As of September 30, 2023, we had a security deposit of $5.9 million related to this lease.

On April 5, 2023 we terminated the Senior Secured Credit Facilities Credit Agreement, as amended (the “Credit Agreement”), with Silicon Valley Bank that we entered into on July 31, 2020. The Credit Agreement provided for a revolving credit facility covering borrowings and letters of credit in an aggregate principal amount not to exceed $40.0 million. Our obligations under the Credit Agreement were secured by a security interest, senior to any current and future debts and to any security interest, in all of our rights, title, and interest in, to and under substantially all of our assets, subject to limited exceptions, including permitted liens. Upon termination, these liens and all other obligations under the credit agreement, were released. A letter of credit issued by Silicon Valley Bank, a division of First Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A.) as successor to Silicon Valley Bank, remains outstanding in the amount of $5.9 million, securing our lease on our corporate headquarters. This letter of credit was transitioned to a cash collateral arrangement on March 30, 2023, and was classified as long-term restricted cash on our balance sheet at September 30, 2023.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-Based Compensation
Stock-based compensation expense	$ 5,100		$ 3,600			$ 13,000	$ 9,800
Proceeds from exercise of stock options						$ 25	$ 1,156
Employee Stock Purchase Plan
Stock-Based Compensation
Exercise of stock options (in shares)						300,000	400,000
Proceeds from exercise of stock options						$ 1,000	$ 1,900
Common Stock
Stock-Based Compensation
Exercise of stock options (in shares)		2,000	30,000	25,000	41,000
Common Stock \| Employee Stock Purchase Plan
Stock-Based Compensation
Proceeds from exercise of stock options	$ 0		$ 400
Common Stock \| Restricted Stock Units
Stock-Based Compensation
Exercise of stock options (in shares)	7,320
Common Stock \| Stock Options and Restricted Stock Units
Stock-Based Compensation
Exercise of stock options (in shares)						38,507

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Revenue (Tables)

9 Months Ended

Sep. 30, 2023

Revenue

Schedule of revenue by discipline


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
Systems	$	231,454	$	171,092	$	641,825	$	488,243
Aftermarket		60,872		58,083		178,491		165,704
Total Revenue	$	292,326	$	229,175	$	820,316	$	653,947

Schedule of revenue by geographic markets


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
North America	$	51,563	$	36,036	$	134,647	$	95,633
Asia Pacific		185,194		166,342		582,238		484,286
Europe		55,569		26,797		103,431		74,028
Total Revenue	$	292,326	$	229,175	$	820,316	$	653,947

Schedule of Contract liabilities


	September 30,		December 31,
	2023		2022

	(in thousands)
Contract liabilities	$	202,029	$	154,777


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands)
Balance, beginning of the period	$	182,540	$	71,549	$	154,777	$	68,436
Deferral of revenue		62,787		70,706		154,216		108,472
Recognition of deferred revenue		(43,298)		(19,666)		(106,964)		(54,319)
Balance, end of the period	$	202,029	$	122,589	$	202,029	$	122,589

Computation of Net Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2023

Computation of Net Earnings per Share

Schedule of components of net income per share


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022

	(in thousands, except per share amounts)
Net income available to common stockholders	$	65,931	$	40,283	$	175,207	$	126,087
Weighted average shares of common stock outstanding used in computing basic income per share		32,807		33,011		32,775		33,116
Incremental options and RSUs		352		378		433		522
Weighted average shares of common stock used in computing diluted net income per share		33,159		33,389		33,208		33,638
Net income per share
Basic	$	2.01	$	1.22	$	5.35	$	3.81
Diluted	$	1.99	$	1.21	$	5.28	$	3.75

Cash, cash equivalents and restricted cash

9 Months Ended

Sep. 30, 2023

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash

Note 8. Cash, cash equivalents and restricted cash

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


	September 30,		December 31,
	2023			2022

	(in thousands)
Cash and cash equivalents	$	142,300	$	185,595
Long-term restricted cash		6,650		752
Total cash, cash equivalents and restricted cash	$	148,950	$	186,347

As of September 30, 2023, we had $6.7 million in restricted cash representing the total of (i) a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, (ii) a $0.7 million letter of credit relating to workers’ compensation insurance and (iii) a $0.1 million deposit relating to customs activity. See Note 12 for further discussion on the $5.9 million cash collateral.

Nature of Business

9 Months Ended

Sep. 30, 2023

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 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, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. As of September 30, 2023, there have been no material changes in the Company’s significant accounting policies. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Concentration of Risk (Details) - customer	3 Months Ended		9 Months Ended		12 Months Ended
Concentration of Risk (Details) - customer	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Total revenue \| Customer concentration risk
Concentration of Risk
Number of customers	0	1	1	1
Total revenue \| Customer concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk		13.80%	10.70%	14.80%
Accounts receivable \| Credit concentration risk
Concentration of Risk
Number of customers			3		2
Accounts receivable \| Credit concentration risk \| First customer
Concentration of Risk
Percentage of concentration risk			11.80%		19.40%
Accounts receivable \| Credit concentration risk \| Second customer
Concentration of Risk
Percentage of concentration risk			11.00%		11.50%
Accounts receivable \| Credit concentration risk \| Third customer
Concentration of Risk
Percentage of concentration risk			10.20%

Computation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Computation of Net Earnings per Share
Net income available to common stockholders	$ 65,931	$ 61,579	$ 47,697	$ 40,283	$ 44,189	$ 41,614	$ 175,207	$ 126,087
Weighted average shares of common stock outstanding used in computing basic income per share	32,807			33,011			32,775	33,116
Incremental options and RSUs	352			378			433	522
Weighted average shares of common stock used in computing diluted net income per share	33,159			33,389			33,208	33,638
Net income per share
Basic	$ 2.01			$ 1.22			$ 5.35	$ 3.81
Diluted	$ 1.99			$ 1.21			$ 5.28	$ 3.75
Anti-dilutive common equivalent shares excluded from calculation	734			5,046			2,598	6,692

- Definition

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

+ References

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+ 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.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Balance, beginning of the period	$ 182,540	$ 71,549	$ 154,777	$ 68,436
Deferral of revenue	62,787	70,706	154,216	108,472
Recognition of deferred revenue	(43,298)	(19,666)	(106,964)	(54,319)
Balance, end of the period	$ 202,029	$ 122,589	$ 202,029	$ 122,589

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Measurements
Short-term investments (money market funds, U.S. Government Securities and Agency Investments)	$ 318,710	$ 246,571
Recurring \| Estimate of fair value measurement
Fair Value Measurements
Total	432,677
Recurring \| Money market funds, U.S. Government Securities and Agency Investments \| Estimate of fair value measurement
Fair Value Measurements
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	114,475	136,771
Total		382,018
Recurring \| U.S. Government Securities and Agency Investments \| Estimate of fair value measurement
Fair Value Measurements
Short-term investments (money market funds, U.S. Government Securities and Agency Investments)	318,202	245,247
Recurring \| Level 1
Fair Value Measurements
Total	432,677
Recurring \| Level 1 \| Money market funds, U.S. Government Securities and Agency Investments
Fair Value Measurements
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	114,475	111,771
Total		357,018
Recurring \| Level 1 \| U.S. Government Securities and Agency Investments
Fair Value Measurements
Short-term investments (money market funds, U.S. Government Securities and Agency Investments)	$ 318,202	245,247
Recurring \| Level 2 \| Money market funds, U.S. Government Securities and Agency Investments
Fair Value Measurements
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)		25,000
Total		$ 25,000

Financing Arrangements (Details) - USD ($) $ in Thousands	Jan. 30, 2015	Sep. 30, 2023	Apr. 05, 2023	Dec. 31, 2022
Financing Arrangements
Long-term finance lease obligation		$ 44,070		$ 45,185
Long-term restricted cash		6,650		$ 752
Sale leaseback obligation
Financing Arrangements
Long-term finance lease obligation		45,500
Security deposit		5,900
Beverly Property Owner LLC \| Building
Financing Arrangements
Proceeds from sale of corporate headquarters	$ 48,900
Lease term	22 years
Silicon Valley Bank \| Revolving credit facility
Financing Arrangements
Maximum borrowing capacity under the credit facility			$ 40,000
Silicon Valley Bank \| Sale leaseback obligation \| Letter of credit
Financing Arrangements
Long-term restricted cash		$ 5,900

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 292,326	$ 229,175	$ 820,316	$ 653,947
Cost of revenue:
Total cost of revenue	162,642	125,854	466,911	361,678
Gross profit	129,684	103,321	353,405	292,269
Operating expenses:
Research and development	24,093	20,563	71,996	56,267
Sales and marketing	16,465	14,573	46,146	38,567
General and administrative	17,446	14,983	48,519	41,163
Total operating expenses	58,004	50,119	166,661	135,997
Income from operations	71,680	53,202	186,744	156,272
Other income (expense):
Interest income	4,580	1,111	12,824	1,558
Interest expense	(1,325)	(1,333)	(4,027)	(4,101)
Other, net	(1,260)	(7,971)	(4,348)	(14,640)
Total other income (expense)	1,995	(8,193)	4,449	(17,183)
Income before income taxes	73,675	45,009	191,193	139,089
Income tax provision	7,744	4,726	15,986	13,002
Net income	$ 65,931	$ 40,283	$ 175,207	$ 126,087
Net income per share:
Basic	$ 2.01	$ 1.22	$ 5.35	$ 3.81
Diluted	$ 1.99	$ 1.21	$ 5.28	$ 3.75
Shares used in computing net income per share:
Basic weighted average shares of common stock	32,807	33,011	32,775	33,116
Diluted weighted average shares of common stock	33,159	33,389	33,208	33,638
Product
Revenue:
Total revenue	$ 283,367	$ 221,540	$ 795,047	$ 631,998
Cost of revenue:
Total cost of revenue	154,798	118,992	444,311	342,387
Services
Revenue:
Total revenue	8,959	7,635	25,269	21,949
Cost of revenue:
Total cost of revenue	$ 7,844	$ 6,862	$ 22,600	$ 19,291

Receivables and Allowances for Credit Losses - Trade Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Receivables and Allowances for Credit Losses
Bad debt expense	$ 700	$ 700
Provision for credit losses		$ 0	$ 0

Concentration of Risk

9 Months Ended

Sep. 30, 2023

Concentration of Risk

Concentration of Risk

Note 14. Concentration of Risk

For the three months ended September 30, 2023, no individual customer accounted for greater than ten percent of total revenue. For the three months ended September 30, 2022, one customer accounted for 13.8% of total revenue.

For the nine months ended September 30, 2023, one customer accounted for 10.7% of total revenue. For the nine months ended September 30, 2022, one customer accounted for 14.8% of total revenue.

At September 30, 2023, three customers accounted for 11.8%, 11.0%, and 10.2% of accounts receivable, respectively. At December 31, 2022, two customers accounted for 19.4% and 11.5% of accounts receivable, respectively.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
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	32,772	32,775
Common stock, shares outstanding	32,772	32,775

Income Taxes

9 Months Ended

Sep. 30, 2023

Income Taxes

Income Taxes

Note 13. Income Taxes

Income tax expense was $7.7 million for the three months ended September 30, 2023, compared to $4.7 million for the three months ended September 30, 2022. The $3.0 million increase was primarily due to an increase in pre-tax

income partially offset by the tax deduction related to foreign sales taxed at a lower rate. Income tax expense was $16.0 million for the nine months ended September 30, 2023, compared to $13.0 million for the nine months ended September 30, 2022. The $3.0 million increase was primarily due to an increase in pre-tax income partially offset by the tax deduction related to stock based compensation and additional research and development tax credit.

The effective tax rate for the three and nine months ended September 30, 2023 was less than the U.S. statutory rate of 21% due to a forecasted Foreign Derived Intangible Income deduction, Federal research and development tax credits and a favorable discrete item related to equity compensation that reduces the annual tax rate.

The deferred income taxes of $44.3 million and $31.7 million as of September 30, 2023 and December 31, 2022, respectively, reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. As of September 30, 2023, we have recorded a $10.6 million valuation allowance in the U.S. against certain tax credits and state net operating losses due to the uncertainty of their realization. Realization of our net deferred tax assets is dependent on future taxable income. We believe it is more likely than not that such assets will be realized; however, ultimate realization could be impacted by market conditions and other variables not known or anticipated at this time.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Valuation allowance
Income tax expense	$ 7,744	$ 4,726	$ 15,986	$ 13,002
Increase (decrease) in income tax expense	3,000		3,000
Deferred tax assets, net	44,323		44,323		$ 31,701
Deferred tax assets valuation allowance	$ 10,600		$ 10,600
Maximum
Valuation allowance
Statutory income tax rate (as a percent)	21.00%		21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Share Repurchase

9 Months Ended

Sep. 30, 2023

Share Repurchase

Share Repurchase

Note 15. Share Repurchase

In February 2022, our Board of Directors approved stock repurchases of up to $100 million of our common stock. In August 2023, our Board of Directors approved additional funding of $200 million for our stock repurchase program, to be available on full utilization of the $100 million repurchase funding approved in February 2022. During the nine months ended September 30, 2023, we repurchased 0.3 million shares at an average cost of $137.54 per share. The timing and actual number of any additional shares to be repurchased under this program will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions.

Repurchased shares are accounted for when the transaction is settled and returned to the status of authorized but unissued shares. Accordingly, on our balance sheet, the repurchase price is deducted from common stock 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.

- Definition

The entire disclosure for equity.

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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Inventories, net (Tables)

9 Months Ended

Sep. 30, 2023

Inventories, net

Schedule of components of inventories


	September 30,		December 31,
	2023		2022

	(in thousands)
Raw materials	$	226,601	$	187,313
Work in process		55,825		35,069
Finished goods (completed systems)		29,797		20,024
Inventories, net	$	312,223	$	242,406

Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

Fair Value Measurements

Note 11. Fair Value Measurements

Fair value is defined as the 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 with initial maturities of three months or less are included in cash and cash equivalents in the consolidated balance sheets. Other investments that have a maturity of greater than three months but less than one year are included within short-term investments in the consolidated balance sheets.

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


	September 30, 2023
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total

	(in thousands)
Assets
Cash equivalents and other short-term investments:
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	$	114,475	$	—	$	—	$	114,475
Short-term investments (U.S. Government Securities and Agency Investments)		318,202		—		—		318,202
Total	$	432,677	$	—	$	—	$	432,677


	December 31, 2022
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total

	(in thousands)
Assets
Cash equivalents and other short-term investments:
Cash equivalents (money market funds, U.S. Government Securities and Agency Investments)	$	111,771	$	25,000	$	—	$	136,771
Short-term investments (U.S. Government Securities and Agency Investments)		245,247		—		—		245,247
Total	$	357,018	$	25,000	$	—	$	382,018

(c) Other Financial Instruments

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

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Loss

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


	Foreign		Defined benefit
	currency		pension plan		Total

	(in thousands)
Balance at December 31, 2022	$	(1,994)	$	26	$	(1,968)
Other comprehensive loss and pension reclassification		(2,192)		—		(2,192)
Balance at September 30, 2023	$	(4,186)	$	26	$	(4,160)

Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 142,300	$ 185,595
Long-term restricted cash	6,650	752
Total cash, cash equivalents and restricted cash	148,950	$ 186,347	$ 309,301	$ 295,680
Letter of credit related to workers' compensation insurance	700
Deposit related to customs activity	100
Beverly Property Owner LLC
Cash collateral related to lease obligation	5,900
Revolving credit facility
Restricted cash which relates to support of outstanding letters of credit	$ 6,700

Cash, cash equivalents and restricted cash (Tables)

9 Months Ended

Sep. 30, 2023

Cash, cash equivalents and restricted cash

Schedule of reconciliation of cash, cash equivalents and restricted cash


	September 30,		December 31,
	2023			2022

	(in thousands)
Cash and cash equivalents	$	142,300	$	185,595
Long-term restricted cash		6,650		752
Total cash, cash equivalents and restricted cash	$	148,950	$	186,347

Insider Trading Arrangements	9 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Leases - Future Minimum Cash Outflow and Weighted-average Remaining Lease Term and Discount Rate (Details) $ in Thousands	Sep. 30, 2023 USD ($) ft²	Dec. 31, 2022 USD ($)
Future minimum lease payments finance lease
2023	$ 1,531
2024	6,252
2025	5,930
2026	6,008
2027	6,128
Thereafter	61,586
Total lease payments	87,435
Less interest portion	(41,927)
Finance lease obligations	45,508
Future minimum lease payments operating lease
2023	2,117
2024	6,248
2025	4,761
2026	3,471
2027	2,502
Thereafter	25,123
Total lease payments	44,222
Less interest portion	(13,371)
Operating lease obligations	30,851
Future minimum lease payments finance and operating lease
2023	3,648
2024	12,500
2025	10,691
2026	9,479
2027	8,630
Thereafter	86,709
Total lease payments	131,657
Less interest portion	(55,298)
Total lease liabilities	76,359	$ 58,712
Lease term and discount rate
Right of use asset	31,082	12,146
Prepaid rent	600	600
Operating liabilities noncurrent	$ 25,850	$ 6,931
Finance lease term	22 years
Operating leases -Weighted-average remaining lease term (in years)	11 years 7 months 6 days
Finance leases - Weighted-average remaining lease term (in years)	13 years 3 months 18 days
Operating leases - Weighted-average discount rate	5.50%
Finance leases - Weighted-average discount rate	10.50%
Beverly Property Owner LLC
Lease term and discount rate
Area of Property \| ft²	98,500
Minimum
Lease term and discount rate
Operating lease term	1 year
Maximum
Lease term and discount rate
Operating lease term	16 years

Accumulated Other Comprehensive Loss (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2022	$ (1,968)
Other comprehensive loss and pension reclassification	(2,192)
Balance at September 30, 2023	(4,160)
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2022	(1,994)
Other comprehensive loss and pension reclassification	(2,192)
Balance at September 30, 2023	(4,186)
Defined benefit pension plans
Changes in accumulated other comprehensive income, net of tax
Balance at December 31, 2022	26
Balance at September 30, 2023	$ 26

- Definition

Amount, after tax, of accumulated increase (decrease) in equity from transaction and other event and circumstance from nonowner source.

+ References + Details

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases

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


		September 30,		December 31,
Leases	Classification	2023		2022

Assets		(in thousands)
Operating leases	Operating lease assets	$	31,082	$	12,146
Finance lease	Finance lease assets*		16,981		17,942
Total leased assets		$	48,063	$	30,088
Liabilities
Current
Operating	Other current liabilities	$	5,001	$	5,367
Finance	Current portion of finance lease obligation		1,438		1,229
Non-current
Operating	Other long-term liabilities		25,850		6,931
Finance	Finance lease obligation		44,070		45,185
Total lease liabilities		$	76,359	$	58,712

*Finance lease assets are recorded net of accumulated depreciation of $46.7 million and include $0.6 million of prepaid financing costs as of September 30, 2023. Finance lease assets are recorded net of accumulated depreciation of $45.9 million and include $0.6 million of prepaid financing costs as of December 31, 2022.

Schedule of lease costs


		Three months ended				Nine months ended
		September 30,				September 30,
Lease cost	Classification	2023		2022		2023		2022

Operating lease cost		(in thousands)
Product / services*	Cost of revenue	$	2,041	$	1,462	$	5,328	$	3,978
Research and development	Operating expenses		183		54		426		186
Sales and marketing*	Operating expenses		419		369		1,231		1,155
General and administrative*	Operating expenses		298		253		813		773
Total operating lease cost		$	2,941	$	2,138	$	7,798	$	6,092
Finance lease cost
Depreciation of leased assets	Cost of revenue, Research and development, Sales and marketing and General and administrative	$	324	$	325	$	961	$	973
Interest on lease liabilities	Interest expense		1,214		1,245		3,668		3,754
Total finance lease cost		$	1,538	$	1,570	$	4,629	$	4,727

Total lease cost		$	4,479	$	3,708	$	12,427	$	10,819

* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.6 million and $1.6 million for the three and nine months ended September 30, 2023, respectively, and includes short-term lease and variable lease costs of approximately $0.4 million and $1.4 million for the three and nine months ended September 30, 2022, respectively.

Schedule of future minimum operating and finance leases


	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases

	(in thousands)
2023	$	1,531	$	2,117	$	3,648
2024		6,252		6,248		12,500
2025		5,930		4,761		10,691
2026		6,008		3,471		9,479
2027		6,128		2,502		8,630
Thereafter		61,586		25,123		86,709
Total lease payments	$	87,435	$	44,222	$	131,657
Less interest portion*		(41,927)		(13,371)		(55,298)
Finance lease and operating lease obligations	$	45,508	$	30,851	$	76,359

* 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


	September 30,
Lease term and discount rate	2023
Weighted-average remaining lease term (years):
Operating leases		11.6
Finance leases		13.3
Weighted-average discount rate:
Operating leases		5.5%
Finance leases		10.5%

Schedule of cash outflows by lease type



	Nine months ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	2023		2022

	(in thousands)
Operating cash outflows from operating leases	$	7,798	$	6,092
Operating cash outflows from finance leases		3,668		3,754
Financing cash outflows from finance leases		915		728
Operating lease assets obtained in exchange for operating lease liabilities		25,697		5,494
Finance lease assets obtained in exchange for new finance lease liabilities		—		—

Inventories, net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventories, net
Raw materials	$ 226,601	$ 187,313
Work in process	55,825	35,069
Finished goods (completed systems)	29,797	20,024
Inventories, net	$ 312,223	$ 242,406

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 142,300	$ 185,595
Short-term investments	318,710	246,571
Accounts receivable, net	192,327	169,773
Inventories, net	312,223	242,406
Prepaid expenses and other current assets	49,481	33,300
Total current assets	1,015,041	877,645
Property, plant and equipment, net	47,169	39,664
Operating lease assets	31,082	12,146
Finance lease assets, net	16,981	17,942
Long-term restricted cash	6,650	752
Deferred income taxes	44,323	31,701
Other assets	40,448	33,791
Total assets	1,201,694	1,013,641
Current liabilities:
Accounts payable	60,061	62,346
Accrued compensation	26,535	35,540
Warranty	11,464	8,299
Income taxes	582	4,304
Deferred revenue	148,299	123,471
Current portion of finance lease obligation	1,438	1,229
Other current liabilities	12,799	12,943
Total current liabilities	261,178	248,132
Long-term finance lease obligation	44,070	45,185
Long-term deferred revenue	53,730	31,306
Other long-term liabilities	41,745	21,762
Total liabilities	400,723	346,385
Commitments and contingencies (Note 16)
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,772 shares issued and outstanding at September 30, 2023; 32,775 shares issued and outstanding at December 31, 2022	33	33
Additional paid-in capital	543,577	550,299
Retained earnings	261,521	118,892
Accumulated other comprehensive loss	(4,160)	(1,968)
Total stockholders' equity	800,971	667,256
Total liabilities and stockholders' equity	$ 1,201,694	$ 1,013,641

Revenue (Details)	9 Months Ended
Revenue (Details)	Sep. 30, 2023
Systems
Disaggregation of Revenue
Payment upon shipment of the system, as a percent	90.00%
Payment upon acceptance, as a percent	10.00%
Systems \| Minimum
Disaggregation of Revenue
Payment upon shipment of the system, as a percent	30.00%
Pre-shipment deposit, as a percent	20.00%
Systems \| Maximum
Disaggregation of Revenue
Payment upon shipment of the system, as a percent	70.00%
Pre-shipment deposit, as a percent	60.00%
Aftermarket \| Minimum
Disaggregation of Revenue
Payment upon delivery of parts, period	30 days
Aftermarket \| Maximum
Disaggregation of Revenue
Payment upon delivery of parts, period	60 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Note 7. Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss, net of tax, by component, for the nine months ended September 30, 2023:


	Foreign		Defined benefit
	currency		pension plan		Total

	(in thousands)
Balance at December 31, 2022	$	(1,994)	$	26	$	(1,968)
Other comprehensive loss and pension reclassification		(2,192)		—		(2,192)
Balance at September 30, 2023	$	(4,186)	$	26	$	(4,160)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lease cost
Total operating lease cost	$ 2,941	$ 2,138	$ 7,798	$ 6,092
Depreciation of leased assets	324	325	961	973
Interest on lease liabilities	1,214	1,245	3,668	3,754
Total finance lease cost	1,538	1,570	4,629	4,727
Total lease cost	4,479	3,708	12,427	10,819
Short-term lease and variable lease costs	600	400	1,600	1,400
Product / Services
Lease cost
Total operating lease cost	2,041	1,462	5,328	3,978
Research and development
Lease cost
Total operating lease cost	183	54	426	186
Sales and marketing*
Lease cost
Total operating lease cost	419	369	1,231	1,155
General and administrative*
Lease cost
Total operating lease cost	$ 298	$ 253	$ 813	$ 773

Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2023	Aug. 31, 2023	Feb. 28, 2022
Share Repurchase
Share repurchase program common stock authorized amount		$ 200.0	$ 100.0
Number of shares repurchased	0.3
Average cost	$ 137.54