View Filing Data

Noncurrent assets of discontinued video camera segment (Note 2)

67,865

71,313

^[1]

Intangible assets, net

36,472

45,315

^[1]

Other assets

5,783

5,720

^[1]

^[1]

431

Total consolidated assets

365,372

345,423

^[1]

Current liabilities:

Accounts payable

34,426

25,292

^[1]

Accrued compensation and benefits

20,364

14,271

^[1]

Accrued warranty

4,963

5,155

^[1]

Deferred profit

11,240

6,066

^[1]

Income taxes payable

2,264

805

^[1]

Other accrued liabilities

8,020

7,675

^[1]

Current liabilities of discontinued video camera segment (Note 2)

^[1]

1,747

Total current liabilities

81,277

61,011

^[1]

Accrued retirement benefits

10,470

10,841

^[1]

Noncurrent income tax liabilities

7,289

7,463

^[1]

Deferred income taxes

12,005

12,948

^[1]

Commitments and contingencies

^[1]

Stockholders' equity:

Preferred stock, $1 par value; 1,000 shares authorized, none issued

^[1]

Common stock, $1 par value; 60,000 shares authorized, 25,535 shares issued and outstanding in 2014 and 25,080 shares in 2013

25,535

25,080

^[1]

Paid-in capital

95,632

89,883

^[1]

Retained earnings

135,317

131,546

^[1]

Accumulated other comprehensive income (loss)

(2,153)

6,651

^[1]

Total stockholders' equity

254,331

253,160

^[1]

Total liabilities and stockholders' equity

$ 365,372

$ 345,423

^[1]

[1]	Derived from December 28, 2013 audited financial statements

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares

Sep. 27, 2014

Dec. 28, 2013

^[1]

Statement of Financial Position [Abstract]

Preferred stock, par value

$ 1

Preferred stock, shares authorized

1,000,000

Preferred stock, shares issued

Common stock, par value

$ 1

Common stock, shares authorized

60,000,000

Common stock, shares issued

25,535,000

25,080,000

Common stock, shares outstanding

25,535,000

25,080,000

[1]	Derived from December 28, 2013 audited financial statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Income Statement [Abstract]
Net sales	$ 94,441	$ 55,977	$ 237,155	$ 170,438
Cost and expenses:
Cost of sales	61,265	43,293	156,295	124,298
Research and development	9,679	11,136	30,419	35,201
Selling, general and administrative	14,089	13,966	43,412	41,389
Total cost and expenses	85,033	68,395	230,126	200,888
Income (loss) from operations	9,408	(12,418)	7,029	(30,450)
Interest and other, net	6	16	25	42
Income (loss) from continuing operations before taxes	9,414	(12,402)	7,054	(30,408)
Income tax provision (benefit)	2,493	(1,289)	2,556	(2,726)
Income (loss) from continuing operations	6,921	(11,113)	4,498	(27,682)
Income from discontinued operations, net of tax	598	293	3,836	714
Net income (loss)	$ 7,519	$ (10,820)	$ 8,334	$ (26,968)
Basic:
Income (loss) from continuing operations	$ 0.28	$ (0.44)	$ 0.18	$ (1.12)
Income from discontinued operations, net of tax	0.02	0.01	0.15	0.03
Net income (loss)	0.30	(0.43)	0.33	(1.09)
Diluted:
Income (loss) from continuing operations	0.27	(0.44)	0.17	(1.12)
Income from discontinued operations, net of tax	0.02	0.01	0.15	0.03
Net income (loss)	$ 0.29	$ (0.43)	$ 0.32	$ (1.09)
Weighted average shares used in computing income (loss) per share:
Basic	25,481	24,929	25,309	24,801
Diluted	26,174	24,929	25,698	24,801
Cash dividends declared per share	$ 0.06	$ 0.06	$ 0.18	$ 0.18

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 7,519	$ (10,820)	$ 8,334	$ (26,968)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(8,537)	4,635	(8,632)	1,763
Adjustments related to postretirement benefits	(92)	18	(172)	108
Change in unrealized gain/loss on investments		(3)		(10)
Other comprehensive income (loss), net of tax	(8,629)	4,650	(8,804)	1,861
Comprehensive loss	$ (1,110)	$ (6,170)	$ (470)	$ (25,107)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
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-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Cash flows from operating activities:

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands

9 Months Ended

Sep. 27, 2014

Sep. 28, 2013

Net income (loss)

$ 8,334

$ (26,968)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Gain on disposal of video camera segment

(4,133)

Operating cash flows of discontinued operations

(694)

1,958

Depreciation and amortization

10,229

9,968

Share-based compensation expense

4,790

3,872

Deferred income taxes

(1,306)

(1,090)

Other accrued liabilities

(356)

431

Changes in current assets and liabilities, excluding effects from acquisitions and divestitures:

Accounts receivable

(28,383)

780

Inventories

(6,008)

10,225

Other current assets

774

1,525

Accounts payable

8,782

(806)

Deferred profit

5,174

3,249

Income taxes payable, including excess stock option exercise benefit

1,352

Accrued compensation, warranty and other liabilities

6,464

(1,271)

Net cash provided by operating activities

5,019

1,878

Cash flows from investing activities, excluding effects from acquisitions and divestitures:

Cash received from sale of video camera segment

9,886

Payment for purchase of Ismeca, net of cash received

(53,463)

Sales and maturities of short-term investments

812

Purchases of property, plant and equipment

(1,241)

(2,479)

Other assets

(62)

(151)

Investing cash flows of discontinued operations

(6)

(34)

Net cash provided by (used in) investing activities

8,622

(55,315)

Cash flows from financing activities:

Cash dividends paid

(4,535)

(2,972)

Issuance of stock, net of repurchases

1,222

900

Net cash used in financing activities

(3,313)

(2,072)

Effect of exchange rate changes on cash and cash equivalents

(1,418)

(1,051)

Net increase (decrease) in cash and cash equivalents

8,910

(56,560)

Cash and cash equivalents at beginning of period

51,668

^[1]

102,808

Cash and cash equivalents at end of period

60,578

46,248

Supplemental disclosure of cash flow information:

Cash paid (refunded) for income taxes

976

(1,135)

Inventory capitalized as property, plant and equipment

1,059

572

Dividends declared but not yet paid

$ 1,532

$ 1,496

[1]	Derived from December 28, 2013 audited financial statements

Summary of Significant Accounting Policies

9 Months Ended

Sep. 27, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.	Summary of Significant Accounting Policies

Basis of Presentation

Our fiscal years are based on a 52- or 53-week period ending on the last Saturday in December. The condensed consolidated balance sheet at December 28, 2013 has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of September 27, 2014 (also referred to as “the third quarter of fiscal 2014” and “the first nine months of fiscal 2014”) and September 28, 2013 (also referred to as “the third quarter of fiscal 2013” and “the first nine months of fiscal 2013”) are unaudited. However, in management’s opinion, these financial statements reflect all adjustments (consisting only of normal, recurring items) necessary to provide a fair presentation of our financial position, results of operations and cash flows for the periods presented. The nine-month periods ended September 27, 2014 and September 28, 2013 were each comprised of 13 and 39 weeks, respectively.

Our interim results are not necessarily indicative of the results that should be expected for the full year. For a better understanding of Cohu, Inc. and our financial statements, we recommend reading these interim condensed consolidated financial statements in conjunction with our audited financial statements for the year ended December 28, 2013, which are included in our 2013 Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”). In the following notes to our interim condensed consolidated financial statements, Cohu, Inc. is referred to as “Cohu”, “we”, “our” and “us”.

Certain prior-period amounts on our condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have no effect on previously reported net income.

Risks and Uncertainties

We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Item 1A. “Risk Factors” included in this Form 10-Q. Understanding these risks and uncertainties is integral to the review of our interim condensed consolidated financial statements.

Discontinued Operations

On June 6, 2014 we completed the sale of substantially all of the assets of our video camera segment, Cohu Electronics Division (“Cohu Electronics”), and its operating results are being presented as discontinued operations and all prior period amounts have been reclassified accordingly. See Note 2, “Disposal of Video Camera Segment” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of $0.3 million and $0.5 million at September 27, 2014 and December 28, 2013, respectively. Our customers include semiconductor manufacturers and semiconductor test subcontractors and other customers located throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at September 27, 2014, we will continue to monitor customer liquidity and other economic conditions, which may result in changes to our estimates regarding collectability.

Goodwill, Other Intangible Assets and Long-lived Assets

We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. We estimated the fair values of our reporting units primarily using the income approach valuation methodology that includes the discounted cash flow method, taking into consideration the market approach and certain market multiples as a validation of the values derived using the discounted cash flow methodology. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on customer forecasts, industry trade organization data and general economic conditions.

We conduct our annual impairment test as of October 1^st of each year. As a result of continued operating losses generated by our microwave communications equipment segment we completed our required annual impairment test, as of October 1, 2014, in connection with our third quarter ended September 27, 2014 and have determined there is no impairment as the estimated fair values of our semiconductor equipment and microwave communications reporting units exceeded their carrying values by approximately 35% and 17%, respectively.

Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the assets carrying amount and estimated fair value.

Share-Based Compensation

Share-based compensation expense related to stock options is recorded based on the fair value of the award on its grant date which we estimate using the Black-Scholes valuation model. Share-based compensation expense related to restricted stock unit awards is calculated based on the market price of our common stock on the grant date, reduced by the present value of dividends expected to be paid on our common stock prior to vesting of the restricted stock unit.

Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands):


	Three Months Ended					Nine Months Ended
	September 27,			September 28,		September 27,			September 28,
	2014			2013		2014			2013
Cost of sales	$	85		$	50	$	350		$	250
Research and development		455			350		1,400			1,220
Selling, general and administrative		1,082			761		3,040			2,402

Total share-based compensation		1,622			1,161		4,790			3,872
Income tax benefit		(60	)		—		(157	)		—

Total share-based compensation, net	$	1,562		$	1,161	$	4,633		$	3,872

Income (Loss) Per Share

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three and nine months ended September 27, 2014, options to issue approximately 1,346,000 and 1,953,000 shares of common stock were excluded from the computation, respectively.

The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands):


	Three Months Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
	2014		2013		2014		2013
Weighted average common shares		25,481		24,929		25,309		24,801
Effect of dilutive stock options		693		—		389		—

		26,174		24,929		25,698		24,801

Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income/loss from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Therefore, no dilutive effect has been recognized in the calculation of income from discontinued operations per share for the three and nine months ended September 28, 2013.

Revenue Recognition

Our revenue recognition policy is disclosed in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 28, 2013. As more fully described in that policy, revenue from products that have not previously satisfied customer acceptance requirements is recognized upon customer acceptance. The gross profit on sales that are not recognized is generally recorded as deferred profit and reflected as a current liability in our consolidated balance sheet.

At September 27, 2014, we had deferred revenue totaling approximately $22.0 million and deferred profit of $11.2 million. At December 28, 2013, we had deferred revenue totaling approximately $7.4 million and deferred profit of $6.1 million. The periodic increase is primarily a result of deferrals of revenue associated with shipments of semiconductor equipment.

Comprehensive Income (Loss)

Our accumulated other comprehensive loss balance totaled approximately $2.2 million at September 27, 2014 compared to accumulated other comprehensive income of approximately $6.7 million at December 28, 2013 and was attributed to all non-owner changes in stockholders’ equity and consists of, on an after-tax basis where applicable, foreign currency adjustments resulting from the translation of certain accounts into U.S. dollars where the functional currency is the Euro or the Swiss Franc, unrealized gains and losses on investments and adjustments related to postretirement benefits. Reclassification adjustments to accumulated other comprehensive income during the first nine months of fiscal 2014 and 2013 were not significant.

Retiree Medical Benefits

We provide post-retirement health benefits to certain executives and directors under a noncontributory plan. The net periodic benefit cost incurred during the first nine months of fiscal 2014 and 2013 was not significant.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements – In July 2013, the Financial Accounting Standards Board (“FASB”) issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment to previous income tax guidance clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this new guidance in the first quarter of fiscal 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

In March 2013, the FASB issued guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The amendments will be effective for fiscal years and interim periods starting after December 15, 2013 with early adoption permitted. The adoption of this new guidance in the first quarter of fiscal 2014 did not have a material impact on our consolidated financial position, results of operations or cash flows.

In April 2014, the FASB issued new guidance on reporting discontinued operations and disclosures of disposals of components of an entity, which amends the existing definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued operations criteria. The guidance redefines a discontinued operation as a component or group of components of an entity that has been disposed of by sale or other than by sale or is classified as held for sale and represents a strategic shift that has a major effect on an entity’s operations and financial results. The guidance is effective prospectively for disposals or components classified as held for sale in periods on or after December 15, 2014 with early adoption permitted. Cohu elected to implement this new guidance in the second quarter of fiscal 2014 and the adoption did not have a material impact on our consolidated financial position, results of operations or cash flows.

Recently Issued Accounting Pronouncements – In May 2014, the FASB issued new guidance on revenue from contracts with customers. The amended guidance outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” Entities have the option of using either a full retrospective or modified approach to adopt the guidance. This guidance is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016. Early adoption is not permitted. We are still evaluating the impact this new guidance might have on our consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued new guidance on going concern, which requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. This guidance is effective for annual and interim periods beginning after December 15, 2016 with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

Disposal of Video Camera Segment

9 Months Ended

Sep. 27, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal of Video Camera Segment

2.	Disposal of Video Camera Segment

On June 6, 2014, Cohu announced the sale of substantially all the assets of our video camera segment, Cohu Electronics. Our decision to sell Cohu Electronics resulted from management’s determination that this industry segment was no longer a strategic fit within our organization. The sales price was $9.5 million in cash plus up to $0.5 million in contingent consideration. The sales price is subject to a working capital adjustment and, as a result, adjustments to the gain on disposal noted below are possible.

Balance sheet information of our discontinued video camera segment is summarized as follows (in thousands):


	September 27,		December 28,
	2014		2013
Assets:
Accounts receivable, net	$	—	$	2,597
Inventories		—		3,568
Other current assets		—		107

Total current assets		—		6,272
Property, plant and equipment, net		—		431

Total assets	$	—	$	6,703

Liabilities:
Accounts payable	$	—	$	730
Other accrued current liabilities		—		1,017

Total liabilities	$	—	$	1,747

Operating results of our discontinued video camera segment is summarized as follows (in thousands):


	Three Months Ended					Nine Months Ended
	September 27,			September 28,		September 27,			September 28,
	2014			2013		2014			2013
Net sales	$	—		$	3,985	$	5,460		$	12,191

Operating income (loss) before income taxes	$	—		$	458	$	(242	)	$	1,115
Gain on disposal of video camera segment		—			—		4,133			—
Income tax provision		(598	)		165		55			401

Income from discontinued operations, net of taxes	$	598		$	293	$	3,836		$	714

In connection with the sale of the assets of our video camera segment we incurred divestiture-related costs that would not have been incurred otherwise. These costs consist of legal advisory services, success based compensation arrangements and certain other items that are incremental to normal operating charges and were expensed as incurred. In the first six months of 2014 we incurred $0.8 million of divestiture related costs; no costs were incurred in the third quarter of 2014. These costs have been netted against the gain on disposal presented above.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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Restructuring and Related Activities [Abstract]

Geographic Consolidation

9 Months Ended

Sep. 27, 2014

Geographic Consolidation

3.	Geographic Consolidation

In September 2014, our wholly owned subsidiary Broadcast Microwave Services, Inc. (“BMS”) substantially completed a geographic consolidation plan to relocate the manufacturing, engineering and administrative function of its German operation to its headquarters facility in Poway, California. For the three-month period ended September 27, 2014, BMS recorded charges to operations totaling $30,000 for severance and one-time termination benefits. These charges are included in cost of sales $8,000, research and development $5,000 and selling, general and administrative expense $17,000. For the nine-month period ended September 27, 2014, BMS recorded charges to operations totaling $457,000 for severance and one-time termination benefits. These charges are included in cost of sales $151,000, research and development $175,000 and selling, general and administrative expense $131,000.

The following table reconciles amounts accrued and paid under the consolidation plan (in thousands):


	Severance and
	Other Payroll
Balance, June 28, 2014	$	429
Costs accrued		30
Amounts paid or charged		(195	)
Impact of currency exchange		(36	)

Balance, September 27, 2014	$	228

Goodwill and Other Purchased Intangible Assets

9 Months Ended

Sep. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Purchased Intangible Assets

4.	Goodwill and Other Purchased Intangible Assets

Changes in the carrying value of goodwill by reportable segment during the year ended December 28, 2013 and the nine-month period ended September 27, 2014 were as follows (in thousands):


	Semiconductor			Microwave			Total
	Equipment			Communications			Goodwill
Balance, December 29, 2012	$	55,520		$	3,236		$	58,756
Additions net of adjustments		10,930			—			10,930
Impact of currency exchange		1,533			94			1,627

Balance, December 28, 2013		67,983			3,330			71,313
Impact of currency exchange		(3,257	)		(191	)		(3,448	)

Balance, September 27, 2014	$	64,726		$	3,139		$	67,865

Purchased Intangible Assets

Purchased intangible assets, subject to amortization are as follows (in thousands):


	September 27, 2014						December 28, 2013
	Gross Carrying		Accumulated		Remaining		Gross Carrying		Accumulated
	Amount		Amortization		Useful Life		Amount		Amortization
Rasco technology	$	31,084	$	22,614		2.3 years	$	33,689	$	21,319
Ismeca technology		28,031		6,245		6.3 years		29,915		3,809
Duma technology		864		624		0.9 years		864		408

	$	59,979	$	29,483			$	64,468	$	25,536

Amortization expense related to intangible assets was approximately $2.0 million in the third quarter of fiscal 2014 and $6.2 million in the first nine months of fiscal 2014. Amortization expense related to intangible assets was approximately $2.6 million in the third quarter of fiscal 2013 and $6.0 million in the first nine months of fiscal 2013. The amounts included in the table above for the periods ended September 27, 2014 and December 28, 2013 exclude approximately $2.2 million and $2.4 million related to the trade names of Rasco, respectively, and exclude approximately $3.8 million and $4.0 million related to the trade names of Ismeca, respectively. Changes in the carrying values of purchased intangible assets include the impact of fluctuations in currency exchange rates.

Financial Instruments Measured at Fair Value

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Financial Instruments Measured at Fair Value

9 Months Ended

Sep. 27, 2014

Fair Value Disclosures [Abstract]

5.	Financial Instruments Measured at Fair Value

Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not hold investment securities for trading purposes. All short-term investments are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk and we monitor credit risk and attempt to mitigate exposure by making high-quality investments and through investment diversification.

Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. Gross realized gains and losses on sales of short-term investments are included in interest income. Realized gains and losses for the periods presented were not significant.

Investments that we have classified as short-term, by security type, are as follows (in thousands):


	September 27, 2014
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	155	$	—	$	—	$	155
Bank certificates of deposit		1,000		—		—		1,000

	$	1,155	$	—	$	—	$	1,155


	December 28, 2013
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

Municipal securities	$	1,200	$	—	$	—	$	1,200

Effective maturities of short-term investments are as follows (in thousands):


	September 27, 2014				December 28, 2013
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	1,155	$	1,155	$	1,200	$	1,200

Our municipal securities include variable rate demand notes which can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week and have varying contractual maturities through 2034. These securities can be used for short-term liquidity needs and are held for limited periods of time. At September 27, 2014 and December 28, 2013 these securities had amortized cost and fair value of $0.2 million and $1.2 million, respectively, and are included in “Due in one year or less” in the table above.

Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. When available, we use quoted market prices to determine the fair value of our investments, and they are included in Level 1. When quoted market prices are unobservable, we use quotes from independent pricing vendors based on recent trading activity and other relevant information, and they are included in Level 2.

The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	Fair value measurements at September 27, 2014 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	56,156	$	—	$	—	$	56,156
Municipal securities		—		155		—		155
Money market funds		—		4,422		—		4,422
Bank certificates of deposit		—		1,000		—		1,000

	$	56,156	$	5,577	$	—	$	61,733


	Fair value measurements at December 28, 2013 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	44,165	$	—	$	—	$	44,165
Municipal securities		—		1,200		—		1,200
Money market funds		—		7,503		—		7,503

	$	44,165	$	8,703	$	—	$	52,868

Employee Stock Benefit Plans

9 Months Ended

Sep. 27, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Stock Benefit Plans

6.	Employee Stock Benefit Plans

Our 2005 Equity Incentive Plan is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. Awards that may be granted under the program include, but are not limited to, non-qualified and incentive stock options, restricted stock units, and performance-based stock units. We settle employee stock option exercises, ESPP purchases, and the vesting of restricted stock units, and performance-based stock units with newly issued common shares. At September 27, 2014, there were 792,955 shares available for future equity grants under the 2005 Equity Incentive Plan.

Stock Options

Stock options may be granted to employees, consultants and directors to purchase a fixed number of shares of our common stock. The exercise prices of options granted are at least equal to the fair market value of our common stock on the dates of grant and options generally vest and become exercisable after one year or in four annual increments beginning one year after the date of grant. Stock options granted under the program have a maximum contractual term of ten years.

At September 27, 2014, we had 2,673,461 stock options outstanding. These options had a weighted-average exercise price of $11.86 per share, an aggregate intrinsic value of approximately $5.0 million and the weighted average remaining contractual term was approximately 4.9 years.

At September 27, 2014, we had 2,060,774 stock options outstanding that were exercisable. These options had a weighted-average exercise price of $12.24 per share, an aggregate intrinsic value of $3.8 million and the weighted average remaining contractual term was approximately 4.0 years.

Restricted Stock Units

We issue restricted stock units to certain employees, consultants and directors. Restricted stock units vest over either a one-year or a four-year period from the date of grant. Prior to vesting, restricted stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding.

Subsequent to December 28, 2013, we awarded restricted stock units covering 497,138 shares of our common stock to employees and at September 27, 2014, we had 1,101,218 restricted stock units outstanding with an aggregate intrinsic value of approximately $13.5 million and the weighted average remaining vesting period was approximately 1.5 years.

Equity-Based Performance Stock Units

Starting in 2012, we began issuing equity-based performance stock units (“PSUs”) to certain employees to reward achievement of financial performance goals set by the Board of Directors. Equity-based performance stock units vest over a three-year period from the date of grant. Prior to vesting, equity-based performance stock units do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock units are not considered issued and outstanding. The number of shares of stock ultimately issued to participants will depend upon the extent to which certain performance goals are met. The award measurement period is one fiscal year and based upon the level of goal achievement, the number of shares we will issue can range from 0% up to 150% of the granted units and vest over three years from the date of initial grant and upon final Board of Directors approval.

Subsequent to December 28, 2013, we awarded 208,015 equity-based performance stock units to senior executives with vesting that is contingent on the level of achievement of certain performance goals, market return and continued service (“market-based PSUs”). The market-based PSUs issued in 2014 are subject to a one-year performance period after which the number of market-based PSUs earned will be determined and will then be subject to certain adjustments resulting from performance of Cohu’s Relative Total Shareholder Return (“TSR”) to a selected peer group over a two year measurement period following the date of grant with the total adjustment ranging from 75% to 125% of the target amount based on the percentage by which our TSR exceeds or falls below the selected peer group. Market-based PSUs earned will vest at the rate of 50% on the second and third anniversary of their grant. We estimated the fair value of market-based PSUs using a Monte Carlo simulation model on the date of grant. The model incorporates assumptions for the risk-free interest rate, Cohu and the selected peer group price volatility, the correlation between Cohu and the selected index, and dividend yields. Compensation expense is recognized ratably over the measurement period.

At September 27, 2014, we had 333,875 PSUs and market based PSUs outstanding with an aggregate intrinsic value of approximately $4.1 million and the weighted average remaining vesting period was approximately 1.5 years.

Employee Stock Purchase Plan (ESPP)

The Cohu, Inc. 1997 Employee Stock Purchase Plan (“the Plan”) provides for the issuance of shares of our common stock. Under the Plan, eligible employees may purchase shares of Cohu common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Cohu common stock at the beginning or end of each 6-month purchase period, subject to certain limits. During the three-month period ended September 27, 2014, we did not sell any shares to our employees under the Plan and we have 250,930 shares available for future issuance.

Income Taxes

9 Months Ended

Sep. 27, 2014

Income Tax Disclosure [Abstract]

Income Taxes

7.	Income Taxes

Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period may be the best estimate of the annual ETR. For the three and nine months ended September 27, 2014 and September 28, 2013 we used the actual year-to-date ETR in computing our tax provision or benefit as a reliable estimate of the annual ETR cannot be made as relatively small changes in our projected income or loss produce a significant variation in our ETR. The actual year-to-date ETR on income or loss from continuing operations for the three months ended September 27, 2014 and September 28, 2013, was 26.5% and 10.4%, respectively, and for the nine months ended September 27, 2014 and September 28, 2013 was 36.2% and 9.0%, respectively. The tax provision or benefit on income or loss from continuing operations in 2014 and 2013 differs from the U.S. federal statutory rate primarily due to the inability to benefit our domestic losses other than to the extent we have a tax provision on income from items that are excluded from continuing operations, foreign income taxed at lower rates, changes in our deferred tax asset valuation allowance, state taxes and changes and interest related to unrecognized tax benefits.

There was no material change to our unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three and nine months ended September 27, 2014.

Industry Segments

9 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Industry Segments

8.	Industry Segments

Our reportable segments are business units that offer different products and are managed separately because each business requires different technology and marketing strategies. As discussed in Note 2, in June 2014, we sold substantially all the assets of Cohu Electronics, which comprised our video camera segment and have presented financial information for this segment as discontinued operations. Subsequent to this transaction Cohu’s remaining reportable segments are semiconductor and microwave communications equipment.

We allocate resources and evaluate the performance of segments based on profit or loss from operations, excluding interest, corporate expenses and unusual gains or losses. Intersegment sales were not significant for any period.

Financial information by industry segment is as follows (in thousands):


	Three Months Ended						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Net sales by segment:
Semiconductor equipment	$	91,573		$	52,403		$	226,042		$	160,326
Microwave communications equipment		2,868			3,574			11,113			10,112

Consolidated net sales for reportable segments	$	94,441		$	55,977		$	237,155		$	170,438


Segment profit (loss):
Semiconductor equipment	$	13,928		$	(9,391	)	$	17,583		$	(18,857	)
Microwave communications equipment		(2,536	)		(1,511	)		(4,873	)		(6,524	)

Profit (loss) for reportable segments		11,392			(10,902	)		12,710			(25,381	)
Other unallocated amounts:
Corporate expenses		(1,984	)		(1,516	)		(5,681	)		(5,069	)
Interest and other, net		6			16			25			42

Income (loss) from continuing operations before taxes	$	9,414		$	(12,402	)	$	7,054		$	(30,408	)

A small number of customers of our semiconductor equipment segment historically have been responsible for a significant portion of our consolidated net sales. Significant customer concentration information is as follows (in thousands):


	Three Months Ended		Nine Months Ended
	September 27,	September 28,	September 27,	September 28,
	2014	2013	2014	2013
Customers individually accounting for more than 10% of consolidated net sales	two	two	two	one
Percentage of consolidated net sales	25%	28%	26%	19%

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Commitments and Contingencies Disclosure [Abstract]

Contingencies

9 Months Ended

Sep. 27, 2014

Contingencies

9.	Contingencies

From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our businesses. The outcome of any litigation is inherently uncertain. While there can be no assurance, we do not believe at the present time that the resolution of the matters described above will have a material adverse effect on our assets, financial position or results of operations.

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

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Commitments and Contingencies Disclosure [Abstract]

Guarantees

9 Months Ended

Sep. 27, 2014

Guarantees

10.

Guarantees

Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration.

Changes in accrued warranty were as follows (in thousands):


	Three Months Ended						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Balance at beginning of period	$	4,582		$	5,719		$	5,155		$	4,602
Warranty expense accruals		1,633			690			3,960			2,857
Warranty payments		(1,252	)		(1,401	)		(4,152	)		(4,284	)
Warranty liability assumed		—			—			—			1,833

Balance at end of period	$	4,963		$	5,008		$	4,963		$	5,008

From time-to-time, during the ordinary course of business, we provide standby letters of credit for certain contingent liabilities under contractual arrangements, including customer contracts. As of September 27, 2014, the maximum potential amount of future payments that Cohu could be required to make under these standby letters of credit was approximately $0.5 million. We have not recorded any liability in connection with these guarantee arrangements beyond that required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these arrangements.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 27, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Risks and Uncertainties

Risks and Uncertainties

Discontinued Operations

Discontinued Operations

Concentration of Credit Risk

Concentration of Credit Risk

Goodwill, Other Intangible Assets and Long-lived Assets

Goodwill, Other Intangible Assets and Long-lived Assets

Share-Based Compensation

Share-Based Compensation

Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands):


	Three Months Ended					Nine Months Ended
	September 27,			September 28,		September 27,			September 28,
	2014			2013		2014			2013
Cost of sales	$	85		$	50	$	350		$	250
Research and development		455			350		1,400			1,220
Selling, general and administrative		1,082			761		3,040			2,402

Total share-based compensation		1,622			1,161		4,790			3,872
Income tax benefit		(60	)		—		(157	)		—

Total share-based compensation, net	$	1,562		$	1,161	$	4,633		$	3,872

Income (Loss) Per Share

Income (Loss) Per Share

The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands):


	Three Months Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
	2014		2013		2014		2013
Weighted average common shares		25,481		24,929		25,309		24,801
Effect of dilutive stock options		693		—		389		—

		26,174		24,929		25,698		24,801

Revenue Recognition

Revenue Recognition

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Retiree Medical Benefits

Retiree Medical Benefits

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 27, 2014

Accounting Policies [Abstract]

Schedule of Reported Share-Based Compensation in Condensed Consolidated Interim Financial Statements

Reported share-based compensation is classified, in the condensed consolidated interim financial statements, as follows (in thousands):


	Three Months Ended					Nine Months Ended
	September 27,			September 28,		September 27,			September 28,
	2014			2013		2014			2013
Cost of sales	$	85		$	50	$	350		$	250
Research and development		455			350		1,400			1,220
Selling, general and administrative		1,082			761		3,040			2,402

Total share-based compensation		1,622			1,161		4,790			3,872
Income tax benefit		(60	)		—		(157	)		—

Total share-based compensation, net	$	1,562		$	1,161	$	4,633		$	3,872

Computation of Basic and Diluted Income (Loss) Per Share

The following table reconciles the denominators used in computing basic and diluted income (loss) per share (in thousands):


	Three Months Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
	2014		2013		2014		2013
Weighted average common shares		25,481		24,929		25,309		24,801
Effect of dilutive stock options		693		—		389		—

		26,174		24,929		25,698		24,801

Disposal of Video Camera Segment (Tables)

9 Months Ended

Sep. 27, 2014

Discontinued Operations and Disposal Groups [Abstract]

Summary of Balance Sheet Information and Operating Results of Discontinued Video Camera Segment

Balance sheet information of our discontinued video camera segment is summarized as follows (in thousands):


	September 27,		December 28,
	2014		2013
Assets:
Accounts receivable, net	$	—	$	2,597
Inventories		—		3,568
Other current assets		—		107

Total current assets		—		6,272
Property, plant and equipment, net		—		431

Total assets	$	—	$	6,703

Liabilities:
Accounts payable	$	—	$	730
Other accrued current liabilities		—		1,017

Total liabilities	$	—	$	1,747

Operating results of our discontinued video camera segment is summarized as follows (in thousands):


	Three Months Ended					Nine Months Ended
	September 27,			September 28,		September 27,			September 28,
	2014			2013		2014			2013
Net sales	$	—		$	3,985	$	5,460		$	12,191

Operating income (loss) before income taxes	$	—		$	458	$	(242	)	$	1,115
Gain on disposal of video camera segment		—			—		4,133			—
Income tax provision		(598	)		165		55			401

Income from discontinued operations, net of taxes	$	598		$	293	$	3,836		$	714

Restructuring and Related Activities [Abstract]

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Geographic Consolidation (Tables)

9 Months Ended

Sep. 27, 2014

Summary of Reconciliation of Amounts Accrued and Paid Under Consolidation Plan

The following table reconciles amounts accrued and paid under the consolidation plan (in thousands):


	Severance and
	Other Payroll
Balance, June 28, 2014	$	429
Costs accrued		30
Amounts paid or charged		(195	)
Impact of currency exchange		(36	)

Balance, September 27, 2014	$	228

Goodwill and Other Purchased Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Value of Goodwill by Reportable Segment

Changes in the carrying value of goodwill by reportable segment during the year ended December 28, 2013 and the nine-month period ended September 27, 2014 were as follows (in thousands):


	Semiconductor			Microwave			Total
	Equipment			Communications			Goodwill
Balance, December 29, 2012	$	55,520		$	3,236		$	58,756
Additions net of adjustments		10,930			—			10,930
Impact of currency exchange		1,533			94			1,627

Balance, December 28, 2013		67,983			3,330			71,313
Impact of currency exchange		(3,257	)		(191	)		(3,448	)

Balance, September 27, 2014	$	64,726		$	3,139		$	67,865

Purchased Intangible Assets, Subject to Amortization

Purchased intangible assets, subject to amortization are as follows (in thousands):


	September 27, 2014						December 28, 2013
	Gross Carrying		Accumulated		Remaining		Gross Carrying		Accumulated
	Amount		Amortization		Useful Life		Amount		Amortization
Rasco technology	$	31,084	$	22,614		2.3 years	$	33,689	$	21,319
Ismeca technology		28,031		6,245		6.3 years		29,915		3,809
Duma technology		864		624		0.9 years		864		408

	$	59,979	$	29,483			$	64,468	$	25,536

Financial Instruments Measured at Fair Value (Tables)

9 Months Ended

Sep. 27, 2014

Fair Value Disclosures [Abstract]

Short-Term Investments by Security Type

Investments that we have classified as short-term, by security type, are as follows (in thousands):


	September 27, 2014
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	155	$	—	$	—	$	155
Bank certificates of deposit		1,000		—		—		1,000

	$	1,155	$	—	$	—	$	1,155


	December 28, 2013
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

Municipal securities	$	1,200	$	—	$	—	$	1,200

Effective Maturities of Short-Term Investments

Effective maturities of short-term investments are as follows (in thousands):


	September 27, 2014				December 28, 2013
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	1,155	$	1,155	$	1,200	$	1,200

Assets Measured at Fair Value on Recurring Basis

The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	Fair value measurements at September 27, 2014 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	56,156	$	—	$	—	$	56,156
Municipal securities		—		155		—		155
Money market funds		—		4,422		—		4,422
Bank certificates of deposit		—		1,000		—		1,000

	$	56,156	$	5,577	$	—	$	61,733


	Fair value measurements at December 28, 2013 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	44,165	$	—	$	—	$	44,165
Municipal securities		—		1,200		—		1,200
Money market funds		—		7,503		—		7,503

	$	44,165	$	8,703	$	—	$	52,868

Financial Information by Industry Segment

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Industry Segments (Tables)

9 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Financial information by industry segment is as follows (in thousands):


	Three Months Ended						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Net sales by segment:
Semiconductor equipment	$	91,573		$	52,403		$	226,042		$	160,326
Microwave communications equipment		2,868			3,574			11,113			10,112

Consolidated net sales for reportable segments	$	94,441		$	55,977		$	237,155		$	170,438


Segment profit (loss):
Semiconductor equipment	$	13,928		$	(9,391	)	$	17,583		$	(18,857	)
Microwave communications equipment		(2,536	)		(1,511	)		(4,873	)		(6,524	)

Profit (loss) for reportable segments		11,392			(10,902	)		12,710			(25,381	)
Other unallocated amounts:
Corporate expenses		(1,984	)		(1,516	)		(5,681	)		(5,069	)
Interest and other, net		6			16			25			42

Income (loss) from continuing operations before taxes	$	9,414		$	(12,402	)	$	7,054		$	(30,408	)

Schedule of Customer Concentration to Consolidated Net Sales

Significant customer concentration information is as follows (in thousands):


	Three Months Ended		Nine Months Ended
	September 27,	September 28,	September 27,	September 28,
	2014	2013	2014	2013
Customers individually accounting for more than 10% of consolidated net sales	two	two	two	one
Percentage of consolidated net sales	25%	28%	26%	19%

Guarantees (Tables)

9 Months Ended

Sep. 27, 2014

Commitments and Contingencies Disclosure [Abstract]

Changes in Accrued Warranty

Changes in accrued warranty were as follows (in thousands):


	Three Months Ended						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Balance at beginning of period	$	4,582		$	5,719		$	5,155		$	4,602
Warranty expense accruals		1,633			690			3,960			2,857
Warranty payments		(1,252	)		(1,401	)		(4,152	)		(4,284	)
Warranty liability assumed		—			—			—			1,833

Balance at end of period	$	4,963		$	5,008		$	4,963		$	5,008

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)

3 Months Ended

9 Months Ended

Oct. 01, 2014

Sep. 27, 2014

Dec. 28, 2013

Net of allowance for doubtful accounts

$ 300,000

$ 500,000

Number of common stock shares excluded from computation of diluted income per share

1,346,000

1,953,000

Deferred revenue

$ 22,000,000

7,400,000

Deferred profit

11,240,000

6,066,000

^[1]

Accumulated other comprehensive income (loss)

$ (2,153,000)

$ 6,651,000

^[1]

Subsequent Event [Member]

Semiconductor Equipment [Member] | Subsequent Event [Member]

Goodwill impairment

$ 0

Percent of fair value exceeding carrying value

35.00%

Microwave Communications Equipment [Member] | Subsequent Event [Member]

Percent of fair value exceeding carrying value

17.00%

[1]	Derived from December 28, 2013 audited financial statements

Summary of Significant Accounting Policies - Schedule of Reported Share-Based Compensation in Condensed Consolidated Interim Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 1,622	$ 1,161	$ 4,790	$ 3,872
Income tax benefit	(60)		(157)
Total share-based compensation, net	1,562	1,161	4,633	3,872
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	85	50	350	250
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	455	350	1,400	1,220
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 1,082	$ 761	$ 3,040	$ 2,402

Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Earnings Per Share [Abstract]
Weighted average common shares	25,481	24,929	25,309	24,801
Effect of dilutive stock options	693		389
Weighted average diluted shares used in computing income (loss) per share	26,174	24,929	25,698	24,801

Disposal of Video Camera Segment - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 06, 2014	Sep. 27, 2014	Jun. 28, 2014	Sep. 27, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received from sale of video camera segment	$ 9,500			$ 9,886
Divestiture-related costs		$ 0	$ 800
Maximum [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent consideration from sale of video camera segment	$ 500

Amounts of material contingent liabilities, for example, but not limited to, product or environmental liabilities or litigation, that remain with the entity despite the disposal of the disposal group that is classified as a component of the entity.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14453-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=28368275&loc=d3e5333-111524

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14472-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14394-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.Z.5 Q2)
-URI http://asc.fasb.org/extlink&oid=26872618&loc=d3e7384-122677

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section Z
-Paragraph Question 2
-Subsection 5

Property, plant and equipment, net

Disposal of Video Camera Segment - Summary of Balance Sheet Information of Discontinued Video Camera Segment (Detail)
$ in Thousands

Dec. 28, 2013

USD ($)

Assets:

Accounts receivable, net

$ 2,597

Inventories

3,568

Other current assets

107

Total current assets

6,272

^[1]

431

^[1]

Total assets

6,703

Liabilities:

Accounts payable

730

Other accrued current liabilities

1,017

Total liabilities

$ 1,747

^[1]

[1]	Derived from December 28, 2013 audited financial statements

Disposal of Video Camera Segment - Summary of Operating Results of Discontinued Video Camera Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2014	Sep. 28, 2013	Sep. 27, 2014	Sep. 28, 2013
Discontinued Operations and Disposal Groups [Abstract]
Net sales		$ 3,985	$ 5,460	$ 12,191
Operating income (loss) before income taxes		458	(242)	1,115
Gain on disposal of video camera segment			4,133
Income tax provision	$ (598)	165	55	401
Income from discontinued operations, net of taxes	$ 598	$ 293	$ 3,836	$ 714

Geographic Consolidation - Additional Information (Detail) - Broadcast Microwave Services [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 27, 2014	Sep. 27, 2014
Schedule Of Geographical Information [Line Items]
Severance and one time termination benefits	$ 30	$ 457
Cost of Sales [Member]
Schedule Of Geographical Information [Line Items]
Severance and one time termination benefits	8	151
Selling, General and Administrative [Member]
Schedule Of Geographical Information [Line Items]
Severance and one time termination benefits	17	131
Research and Development [Member]
Schedule Of Geographical Information [Line Items]
Severance and one time termination benefits	$ 5	$ 175

Geographic Consolidation - Summary of Reconciliation of Amounts Accrued and Paid Under Consolidation Plan (Detail) - Severance and Other Payroll [Member] $ in Thousands	3 Months Ended
	Sep. 27, 2014 USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 429
Costs accrued	30
Amounts paid or charged	(195)
Impact of currency exchange	(36)
Ending balance	$ 228

Goodwill and Other Purchased Intangible Assets - Changes in Carrying Value of Goodwill by Reportable Segment (Detail) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 27, 2014

Dec. 28, 2013

Segment Reporting Information [Line Items]

Additions net of adjustments

$ 71,313

^[1]

$ 58,756

10,930

Impact of currency exchange

(3,448)

1,627

Semiconductor Equipment [Member]

67,865

71,313

^[1]

Segment Reporting Information [Line Items]

Additions net of adjustments

67,983

55,520

10,930

Impact of currency exchange

(3,257)

1,533

Microwave Communications Equipment [Member]

64,726

67,983

Segment Reporting Information [Line Items]

Impact of currency exchange

3,330

3,236

(191)