v3.26.1
Segment Reporting and Geographic Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

NOTE 13. 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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 28,

 

 

June 30,

 

 

June 28,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Revenue

 

$

343,129

 

 

$

253,597

 

 

$

635,078

 

 

$

520,204

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted cost of revenue (1)

 

 

147,616

 

 

 

115,284

 

 

 

276,841

 

 

 

235,023

 

Adjusted research and development (2)

 

 

38,879

 

 

 

35,292

 

 

 

73,977

 

 

 

64,012

 

Adjusted sales and marketing (2)

 

 

23,061

 

 

 

14,910

 

 

 

44,520

 

 

 

34,626

 

Adjusted general and administrative (2)

 

 

30,753

 

 

 

22,496

 

 

 

59,047

 

 

 

44,432

 

Other segment items:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other (3)

 

 

15,268

 

 

 

22,415

 

 

 

30,664

 

 

 

27,173

 

Merger and acquisitions related (3)

 

 

4,303

 

 

 

2,507

 

 

 

13,566

 

 

 

2,666

 

Amortization

 

 

19,699

 

 

 

8,446

 

 

 

39,399

 

 

 

16,891

 

Operating income

 

 

63,550

 

 

 

32,247

 

 

 

97,064

 

 

 

95,381

 

Total other income, net

 

 

4,946

 

 

 

7,494

 

 

 

9,484

 

 

 

16,017

 

Provision for income taxes

 

 

8,394

 

 

 

5,830

 

 

 

12,696

 

 

 

13,392

 

Net income

 

$

60,102

 

 

$

33,911

 

 

$

93,852

 

 

$

98,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 28,

 

 

June 30,

 

 

June 28,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Revenue from customers:

 

 

 

 

 

 

 

 

 

 

 

 

Taiwan

 

$

106,407

 

 

$

65,616

 

 

$

190,419

 

 

$

168,197

 

South Korea

 

 

100,612

 

 

 

82,650

 

 

 

167,310

 

 

 

175,964

 

United States

 

 

84,366

 

 

 

27,556

 

 

 

168,100

 

 

 

53,153

 

Europe

 

 

16,307

 

 

 

12,846

 

 

 

29,318

 

 

 

29,390

 

China

 

 

14,707

 

 

 

17,337

 

 

 

31,764

 

 

 

29,513

 

Southeast Asia

 

 

11,251

 

 

 

13,824

 

 

 

25,499

 

 

 

21,850

 

Japan

 

 

9,479

 

 

 

33,768

 

 

 

22,668

 

 

 

42,137

 

Total revenue

 

$

343,129

 

 

$

253,597

 

 

$

635,078

 

 

$

520,204

 

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 28,

 

 

 

2026

 

 

2025

 

Customer A

 

 

16.2

%

 

 

21.6

%

Customer B

 

 

15.9

%

 

 

16.8

%

Customer C

 

 

14.9

%

 

 

17.6

%

Customer D

 

 

10.3

%

 

^

 

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

 

 

 

 

 

 

Five customers’ accounts receivable balances were individually greater than 10.0% of net accounts receivable at June 30, 2026, representing, in the aggregate approximately 64.3% 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.