v3.26.1
Segment Reporting and Geographic Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

NOTE 12. Segment Reporting and Geographic Information

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

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

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 29,

 

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Revenue

 

$

291,949

 

 

$

266,607

 

Less:

 

 

 

 

 

 

Adjusted cost of revenue (1)

 

 

129,225

 

 

 

119,739

 

Adjusted research and development (2)

 

 

35,098

 

 

 

28,720

 

Adjusted sales and marketing (2)

 

 

21,459

 

 

 

19,716

 

Adjusted general and administrative (2)

 

 

28,294

 

 

 

21,937

 

Other segment items:

 

 

 

 

 

 

Restructuring and other (3)

 

 

15,396

 

 

 

4,758

 

Merger and acquisitions related (3)

 

 

9,263

 

 

 

158

 

Amortization

 

 

19,700

 

 

 

8,445

 

Operating income

 

 

33,514

 

 

 

63,134

 

Total other income, net

 

 

4,538

 

 

 

8,523

 

Provision for income taxes

 

 

4,302

 

 

 

7,562

 

Net income

 

$

33,750

 

 

$

64,095

 

 

 

 

 

 

 

 

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

 

(2) Excludes merger and acquisition related expenses

 

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

 

 

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

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 29,

 

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Revenue from third parties:

 

 

 

 

 

 

Taiwan

 

$

84,962

 

 

$

102,581

 

South Korea

 

 

69,844

 

 

 

93,314

 

United States

 

 

59,241

 

 

 

25,597

 

China

 

 

27,778

 

 

 

12,176

 

Japan

 

 

16,876

 

 

 

8,369

 

Southeast Asia

 

 

16,697

 

 

 

8,026

 

Europe

 

 

16,551

 

 

 

16,544

 

Total revenue

 

$

291,949

 

 

$

266,607

 

The following customers accounted for 10.0% or more of total revenue for the indicated periods:

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 29,

 

 

 

2026

 

 

2025

 

Customer A

 

 

14.4

%

 

 

14.4

%

Customer B

 

 

13.4

%

 

^

 

Customer C

 

 

13.3

%

 

 

24.0

%

Customer D

 

^

 

 

 

21.1

%

^ The customer accounted for less than 10.0% of total revenue during the period.

 

 

 

 

 

 

Two customers’ accounts receivable balances were individually greater than 10.0% of net accounts receivable at March 31, 2026, representing, in the aggregate approximately 27.0% of the Company’s total accounts receivable.

One customer’s accounts receivable balances was individually greater than 10.0% of net accounts receivable at January 3, 2026, representing, approximately 12.2% of the Company’s total accounts receivable.

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