View Filing Data

Raw materials and purchased parts

16,340

31,990

^[1]

Accounts receivable, net

76,548

63,019

^[1]

Inventories:

26,470

23,037

^[1]

Work in process

22,711

17,599

^[1]

Finished goods

7,230

4,866

^[1]

56,411

45,502

^[1]

Other current assets

8,288

8,593

^[1]

Total current assets

279,571

245,149

^[1]

Property, plant and equipment, at cost:

Land and land improvements

7,917

4,079

^[1]

Buildings and building improvements

13,612

7,967

^[1]

Machinery and equipment

45,292

35,157

^[1]

66,821

47,203

^[1]

Less accumulated depreciation and amortization

(32,558)

(28,969)

^[1]

Net property, plant and equipment

34,263

18,234

^[1]

Goodwill

65,483

58,849

^[1]

Intangible assets, net

17,766

17,835

^[1]

Other assets

7,381

5,445

^[1]

404,464

345,512

^[1]

Current liabilities:

Short-term borrowings

3,130

^[1]

Current installments of long-term debt

1,300

^[1]

Accounts payable

29,907

31,444

^[1]

Accrued compensation and benefits

18,509

14,770

^[1]

Accrued warranty

4,344

3,737

^[1]

Deferred profit

6,721

6,886

^[1]

Income taxes payable

2,725

1,920

^[1]

Other accrued liabilities

10,526

9,932

^[1]

Total current liabilities

77,162

68,689

^[1]

Accrued retirement benefits

17,033

15,673

^[1]

Noncurrent deferred gain on sale of facility

10,597

11,689

^[1]

Deferred income taxes

7,132

5,852

^[1]

Noncurrent income tax liabilities

6,600

6,375

^[1]

Long-term debt, excluding current installments

4,853

^[1]

Other accrued liabilities

2,290

1,765

^[1]

Stockholders' equity:

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

^[1]

Common stock, $1 par value; 60,000 shares authorized, 28,213 shares issued and outstanding in 2017 and 26,842 shares in 2016

28,213

26,842

^[1]

Paid-in capital

123,064

111,950

^[1]

Retained earnings

145,536

124,559

^[1]

Accumulated other comprehensive loss

(18,016)

(27,882)

Total stockholders' equity

278,797

235,469

^[1]

$ 404,464

$ 345,512

^[1]

[1]	Derived from December 31, 2016 audited financial statements

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
shares in Thousands

Sep. 30, 2017

Dec. 31, 2016

^[1]

Preferred stock, par value (in dollars per share)

$ 1

Preferred stock, shares authorized (in shares)

1,000

Preferred stock, shares issued (in shares)

Common stock, par value (in dollars per share)

$ 1

Common stock, shares authorized (in shares)

60,000

Common stock, shares issued (in shares)

28,213

26,842

Common stock, shares outstanding (in shares)

28,213

26,842

[1]	Derived from December 31, 2016 audited financial statements

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Net sales	$ 93,651	$ 69,259	$ 268,614	$ 211,390
Cost and expenses:
Cost of sales	56,742	45,979	162,319	142,089
Research and development	9,609	8,673	28,851	24,698
Selling, general and administrative	16,882	13,701	47,362	41,990
	83,233	68,353	238,532	208,777
Income from operations	10,418	906	30,082	2,613
Interest and other, net	174	71	417	173
Income from continuing operations before taxes	10,592	977	30,499	2,786
Income tax provision	1,837	849	4,273	1,832
Income from continuing operations	8,755	128	26,226	954
Income (loss) from discontinued operations		51	(278)	(4)
Net income	$ 8,755	$ 179	$ 25,948	$ 950
Basic:
Income from continuing operations (in dollars per share)	$ 0.31	$ 0.01	$ 0.95	$ 0.04
Income (loss) from discontinued operations (in dollars per share)		0	(0.01)	0
Net income (in dollars per share)	0.31	0.01	0.94	0.04
Diluted:
Income from continuing operations (in dollars per share)	0.30	0.01	0.92	0.03
Income (loss) from discontinued operations (in dollars per share)		0	(0.01)	0
Net income (in dollars per share)	$ 0.30	$ 0.01	$ 0.91	$ 0.03
Weighted average shares used in computing income (loss) per share:
Basic (in shares)	28,155	26,761	27,614	26,596
Diluted (in shares)	29,105	27,367	28,640	27,382
Cash dividends declared per share (in dollars per share)	$ 0.06	$ 0.06	$ 0.18	$ 0.18

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Net income	$ 8,755	$ 179	$ 25,948	$ 950
Other comprehensive income, net of tax:
Foreign currency translation adjustments	2,570	561	9,975	2,724
Adjustments related to postretirement benefits	12	(2)	(116)	(35)
Change in unrealized gain/loss on investments	6	(3)	7	(1)
Other comprehensive income, net of tax	2,588	556	9,866	2,688
Comprehensive income	$ 11,343	$ 735	$ 35,814	$ 3,638

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2017

Sep. 24, 2016

Cash flows from operating activities:

Net income

$ 25,948

$ 950

Adjustments to reconcile net income to net cash provided by operating activities:

Loss on disposal of microwave communications equipment business

278

Depreciation and amortization

6,731

8,089

Share-based compensation expense

5,336

5,291

Amortization of inventory step-up

1,404

Deferred income taxes

(932)

(1,111)

Mark to market adjustment to Kita contingent consideration liability

668

Changes in other accrued liabilities

427

716

Changes in other assets

572

(32)

(Gain) loss on disposal of assets

(22)

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

Accounts receivable

(9,013)

3,073

Inventories

(6,701)

3,551

Accounts payable

(3,620)

(2,109)

Other current assets

1,257

(411)

Income taxes payable

1,272

(2,451)

Deferred profit

(299)

1,970

Accrued compensation, warranty and other liabilities

303

980

Net cash provided by operating activities

23,609

18,547

Cash flows from investing activities, excluding effects from acquisitions:

Sales and maturities of short-term investments

39,315

13,654

Purchases of short-term investments

(23,665)

(31,453)

Cash paid for Kita, net of cash received

(11,716)

Purchases of property, plant and equipment

(4,739)

(2,797)

Cash received from sale of fixed assets

109

852

Net cash used in investing activities

(696)

(19,744)

Cash flows from financing activities:

Issuance (repurchases) of common stock, net

7,149

(1,325)

Cash dividends paid

(4,894)

(4,748)

Repayments of long-term debt

(1,280)

Net cash provided by (used in) financing activities

975

(6,073)

Effect of exchange rate changes on cash and cash equivalents

2,051

1,117

Net increase (decrease) in cash and cash equivalents

25,939

(6,153)

Cash and cash equivalents at beginning of period

96,045

^[1]

115,370

Cash and cash equivalents at end of period

121,984

109,217

Supplemental disclosure of cash flow information:

Cash paid for income taxes

3,740

5,977

Inventory capitalized as property, plant and equipment

113

201

Dividends declared but not yet paid

1,683

1,603

Property, plant and equipment purchases included in accounts payable

$ 594

$ 118

[1]	Derived from December 31, 2016 audited financial statements

Note 1 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Significant Accounting Policies [Text Block]

1.	Summary of Significant Accounting Policies

Basis of Presentation

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

The condensed consolidated balance sheet at

December 31, 2016

has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of

September 30, 2017 (

also referred to as “the

third

quarter of fiscal

2017”

and “the

first

nine

months of fiscal

2017”

) and

September 24, 2016 (

also referred to as “the

third

quarter of fiscal

2016”

and “the

first

nine

months of fiscal

2016”

) 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

three

- and

nine

-month periods ended

September 30, 2017

were comprised of

and

weeks, respectively. The

three

- and

nine

-month periods ended

September 24, 2016

were comprised of

and

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 31, 2016,

which are included in our

2016

Annual Report on Form

-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 year amounts have been restated as a result of our early adoption of Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation - Stock Compensation (Topic

718

Improvements to Employee Share-Based Payment Accounting

(ASU

2016

). While the effective date of ASU

2016

was for fiscal years beginning after

December 15, 2016,

earlier adoption was permitted and we elected to adopt ASU

2016

during the

fourth

quarter of fiscal

2016.

As part of our adoption of ASU

2016

we elected to eliminate the use of an estimated forfeiture rate and recognize actual forfeitures as they occur. This amendment was adopted on a modified retrospective basis and, as a result, our share-based compensation expense for the

three

- and

nine

-month periods ended

September 24, 2016

were revised and were approximately

$0.1

million and

$15,000

higher in each period, respectively, under the new method, than what was previously reported.

Discontinued Operations

June 2015,

we sold our microwave communications equipment segment, Broadcast Microwave Services, Inc. (“BMS”). See Note

“Discontinued Operations” 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

$0.1

million at both

September 30, 2017

and

December 31, 2016.

Our customers include semiconductor manufacturers and semiconductor test subcontractors throughout many areas of the world. While we believe that our allowance for doubtful accounts is adequate and represents our best estimate at

September 30, 2017,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Segment Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

), which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Based on the provisions of ASC

280,

we have determined that our identified operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

one

segment, semiconductor equipment and the financial information disclosed herein materially represents all of the financial information related to our semiconductor equipment segment.

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

1st

of each year, and have determined there was

impairment as of

October

2016

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates.

As of

September 30, 2017,

we do

not

believe that circumstances have occurred that indicate impairment of our goodwill is more-likely-than-

not.

In the event we determine that an interim goodwill impairment review is required in a future period, the review

may

result in an impairment charge, which would have a negative impact on our results of operations.

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 carrying amount and estimated fair value.

Foreign Remeasurement and

Currency Translation

Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During

the

three

and

nine

months ended

September 30, 2017,

we recognized foreign exchange losses of

$0.2

million and

$2.7

million, respectively, in our condensed consolidated statements of income. During the

three

and

nine

months

ended

September 24, 2016,

we recognized approximately

$0.3

million and

$1.0

million of foreign exchange losses in our condensed consolidated statements of income, respectively. Certain of our foreign subsidiaries have designated the local currency as their functional currency and, as a result, their assets and liabilities are translated at the rate of exchange at the balance sheet date, while revenue and expenses are translated using the average exchange rate for the period. Cumulative translation adjustments resulting from the translation of the financial statements are included as a separate component of stockholders’ equity.

Share-Based Compensation

We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results.

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

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016
Cost of sales	$	123		$	101		$	327		$	309
Research and development		278			327			856			955
Selling, general and administrative		1,459			1,330			4,153			4,027
Total share-based compensation		1,860			1,758			5,336			5,291
Income tax benefit		(107	)		(76	)		(429	)		(189	)
Total share-based compensation, net	$	1,753		$	1,682		$	4,907		$	5,102

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 and performance 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 30, 2017,

options to issue approximately

5,000

and

103,000

shares of common stock were excluded from the computation, respectively. For the

three

and

nine

months ended

September 24, 2016,

options to issue approximately

707,000

and

752,000

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 30,		September 24,		September 30,		September 24,
	2017		2016		2017		2016
Weighted average common shares		28,155		26,761		27,614		26,596
Effect of dilutive securities		950		606		1,026		786
		29,105		27,367		28,640		27,382

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 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.

Revenue Recognition

Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when there is persuasive evidence of an arrangement, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In circumstances where either title or risk of loss pass upon destination or acceptance, we defer revenue recognition until such events occur.

Revenue for established products that have previously satisfied a customer

’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In certain instances, customer payment terms

may

provide that a minority portion (e.g. up to

20%

) of the equipment purchase price be paid only upon customer acceptance. In those situations, the majority portion (e.g.

80%

) of revenue where the contingent payment is tied to shipment and the entire product cost of sale are recognized upon shipment and passage of title and the minority portion of the purchase price related to customer acceptance is deferred and recognized upon receipt of customer acceptance. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are

not

determinable and in the case of new products, revenue and cost of sales is deferred until customer acceptance has been received. Our post-shipment obligations typically include installation and standard warranties. The estimated fair value of installation related revenue is recognized in the period the installation is performed. Service revenue is recognized ratably over the period of the related contract or upon completion of the services if they are short-term in nature. Spares, contactor and kit revenue is generally recognized upon shipment.

Certain of our equipment sales are accounted for as multiple-element arrangements. A multiple-element arrangement is a transaction which

may

involve the delivery or performance of multiple products, services, or rights to use assets, and performance

may

occur at different points in time or over different periods of time.

For arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. We limit the amount of revenue recognition for delivered elements to the amount that is

not

contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment.

On shipments where sales are

not

recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped.

September 30, 2017,

we had deferred revenue totaling approximately

$9.9

million and deferred profit of

$6.7

million. At

December 31, 2016,

we had deferred revenue totaling approximately

$9.3

million and deferred profit of

$6.9

million. The periodic change is primarily a result of increases and decreases in deferrals of revenue associated with product shipments made to our customers in accordance with our revenue recognition policy.

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016

Customers individually accounting for more than 10% of net sales		two			three			two			two

Percentage of net sales		26.5	%		37.4	%		28.5	%		30.5	%

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately

$18.0

million and

$27.9

million at

September 30, 2017

and

December 31, 2016,

respectively, 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 of our subsidiary accounts where the functional currency is

not

the U.S. Dollar

and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss

during the

three

- and

nine

-month periods ended of fiscal

2017

and

2016

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

2017

and

2016

was

not

significant.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

–

July 2015,

the Financial Accounting Standards Board (“FASB”) issued ASU

No.

2015

11,

Simplifying the Measurement of Inventory

. Under this guidance, inventory should be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The adoption of this authoritative guidance did

not

have a material impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

– In

March 2017,

the FASB issued ASU

No.

2017

07,

Compensation – Retirement Benefits (Topic

715

) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

, which provides additional guidance on the presentation of net periodic pension and postretirement benefit costs in the income statement and on the components eligible for capitalization. The amendments in this guidance require that an employer report the service cost component of the net periodic benefit costs in the same income statement line item as other compensation costs arising from services rendered by employees during the period. The non-service-cost components of net periodic benefit costs are to be presented in the income statement separately from the service cost components and outside a subtotal of income from operations. The guidance also allows for the capitalization of the service cost components, when applicable (i.e., as a cost of internally manufactured inventory or a self-constructed asset). The guidance is effective for annual periods beginning after

December 15, 2017,

including interim periods within those annual periods; early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have

not

been issued or made available for issuance. The amendments in this guidance are to be applied retrospectively. We are currently assessing the impact this guidance will have on our consolidated financial statements.

January 2017,

the FASB issued ASU

No.

2017

04,

Simplifying the Test for Goodwill Impairment

. It eliminates Step

from the goodwill impairment test and requires an entity to recognize an impairment charge for the amount by which the carrying amount of goodwill exceeds the reporting unit's fair value,

not

to exceed the carrying amount of goodwill. This guidance is effective for annual and any interim impairment tests in fiscal years beginning after

December 15, 2019.

We do

not

expect this guidance to have any impact on our consolidated financial statements.

January 2017,

the FASB issued ASU

No.

2017

01,

Clarifying the Definition of a Business.

It revises the definition of a business and provides a framework to evaluate when an input and a substantive process are present in an acquisition to be considered a business. This guidance is effective for annual periods beginning after

December 15, 2017.

We do

not

expect this guidance to have any impact on our consolidated financial statements.

November 2016,

the FASB issued ASU

No.

2016

18,

Restricted Cash.

It requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after

December 15, 2017.

We do

not

expect this guidance to have a material impact on our consolidated financial statements.

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments.

It provides guidance on

eight

specific cash flow issues with the objective of reducing the existing diversity in practice in how they are classified in the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after

December 15, 2017.

Early adoption is permitted, provided that all of the amendments are adopted in the same period. We do

not

expect this guidance to have a material impact on our consolidated financial statements.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

. Under this guidance, lessees will be required to recognize a right-of-use asset and a lease liability for all operating leases defined under previous GAAP. This guidance is effective for interim and annual reporting periods beginning after

December 15, 2018.

The new guidance must be adopted using a modified retrospective transition, and provides for certain practical expedients. We are still completing our analysis on the impact this guidance will have on our consolidated financial statements and related disclosures, but recognizing the lease liabilities and related right-of-use assets will impact our balance sheet.

May 2014,

the FASB issued Accounting Standards Update

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(ASU

2014

)

, which amends the existing accounting standards for revenue recognition. In

August 2015,

the FASB issued ASU

No.

2015

14,

Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date

, which delays the effective date of

ASU

2014

one

year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In

March 2016,

the FASB issued Accounting Standards Update

No.

2016

08,

Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU

2016

)

which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to customers. The new revenue recognition standard will be effective for us in the

first

quarter of

2018.

We will adopt the new standard effective

December 31, 2017,

which is the

first

day of our

2018

fiscal year. The new standard also permits

two

methods of adoption: retrospectively to each prior reporting period presented (the full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method)

We currently anticipate adopting the standard using the modified retrospective method. We are still in the process of completing our analysis on the impact this guidance will have on our consolidated financial statements and related disclosures. Based on our preliminary review of our customer agreements, we currently expect that our revenue will continue to be recognized at a point in time, generally upon shipment of products to customers, consistent with our current revenue recognition model. In certain instances, when customer payment terms provide that a minority portion of the equipment purchase price be paid only upon customer acceptance, recognition of revenue

may

occur sooner under the new model.

When adopting the new standard, on

December 31, 2017,

revenue that was

not

recognized in fiscal

2017,

because the equipment had

not

been accepted by the customer, will be recognized as a cumulative catch-up adjustment to the opening balance of retained earnings as opposed to being recognized as future revenue upon acceptance. As the timing of customer acceptances cannot be predicted, we do

not

know the impact on future revenues and associated operating income at this time. However, revenues, deferred profit, cost of sales, and associated operating income

may

be materially impacted depending on the timing of customer acceptance.

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets

9 Months Ended

Sep. 30, 2017

Business Combination, Goodwill, and Intangible Assets Disclosure [Text Block]

2.	Business Acquisitions, Goodwill and Other Purchased Intangible Assets

Kita

January 4, 2017,

we completed the acquisition of all the outstanding share capital of Kita Manufacturing Co., LTD. and Kita USA, Inc. (together “Kita”) (the “Acquisition”). Kita, headquartered in Osaka, Japan, and with operations in Attleboro, Massachusetts and Kyoto, Japan, designs, manufactures and sells spring probe contacts used in final test contactors, probe cards, PCB test boards and connectors sold to customers worldwide. The acquisition of Kita was a strategic transaction to expand our total available market, extend our market leadership and broaden our product offerings. In connection with the Acquisition we incurred acquisition related costs, which were expensed to selling, general and administrative, that totaled

$1.0

million and

$0.9

million during the

first

nine

months of

September 30, 2017

and

September 24, 2016,

respectively.

The Acquisition has been accounted for in conformity with FASB Accounting Standards Codification

805,

Business Combinations

(“ASC

805”

). The purchase price for Kita was funded primarily by cash reserves and consisted of the following

(

in thousands

Cash paid to Kita shareholders	$	15,000
Fair value of contingent consideration		823
Total purchase price	$	15,823

The contingent consideration represents the estimated fair value of future payments totaling up to

$3.0

million we would be required to make as a result of Kita achieving annual revenue and EBITDA targets in

2017

and

2018

as specified in the purchase agreement for the Acquisition. The fair value of the contingent consideration recognized on the acquisition date was estimated by using the

Monte Carlo simulation model

. The contingent consideration payable has been classified as level

in the fair value hierarchy. See Note

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy.

Contingent consideration is recorded in our condensed consolidated balance sheets in other accrued liabilities. Adjustments to the fair value of contingent consideration are reflected in selling, general, and administrative expense in our condensed consolidated statements of income and are included in the acquisition related costs above.

The following table presents the fair value of contingent consideration from the date of acquisition through

September 30, 2017 (

in thousands

Fair Value of

Mark to Market

Fair Value of

Consideration

Settlement of

Adjustment

Impact of

Consideration at

Recognized at

Contingent

Charged to

Currency

September 30,

Acquisition Date

Consideration

Expense

Exchange

2017

Kita

823

668

1,500

We have

not

finalized the purchase price allocation. Accordingly, the preliminary purchase price allocation shown below could materially change as the fair values of the tangible and intangible assets acquired and liabilities assumed and the related income tax effects are finalized during the remainder of the measurement period (which will

not

exceed

months from the Acquisition closing date). The Acquisition was nontaxable to Cohu and certain of the assets acquired, including goodwill and intangibles, will

not

be deductible for tax purposes. The acquired assets and liabilities of Kita were recorded at their respective fair values

including an amount for goodwill representing the difference between the Acquisition consideration and the fair value of the identifiable net assets.

The table below summarizes the assets acquired and liabilities assumed as of

January 4, 2017

(

in thousands

Current assets, including cash received	$	10,491
Property, plant and equipment		12,751
Other assets		2,291
Intangible assets subject to amortization		2,100
Goodwill		3,142
Total assets acquired		30,775
Liabilities assumed		(14,952	)
Net assets acquired	$	15,823

The preliminary allocation of the intangible assets subject to amortization is as follows

(in thousands)

			Average
	Estimated		Useful Life
Description	Fair Value		(in years)
Developed technology	$	700		8
Customer relationships		600		4
Covenant not-to-compete		300		10
Product backlog		100		1
Trade names		400		5
	$	2,100

The preliminary value assigned to the developed technology was determined by using the multi-period excess earnings method under the income approach. Developed technology, which comprises products that have reached technological feasibility, includes the products in Kita

’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Kita and its competitors. The estimated cash flows were based on revenues for the developed technology net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets.

The value assigned to customer relationships was determined by using the with and without method under the income approach, which analyzes the difference in discounted cash flows generated with the customer relationships in place compared to the discounted cash flows generated without the customer relationships in place.

The value assigned to the covenant

not

-to-compete was estimated based upon the with and without method of the income approach. Specifically, the present value of the differential of the projected cash flows with and without the covenant in place was measured utilizing the appropriate expected rate of return.

The value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of the acquisition date, using the income approach to discount back to present value the cash flows attributable to the backlog.

The value assigned to trade names was estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset.

Kita

’s results of operations were included in, but

not

material to, Cohu’s consolidated statements of income and comprehensive income commencing

January 4, 2017

and Kita’s net sales for the

three

- and

nine

-month periods ended

September 30, 2017

were

$5.3

million and

$14.4

million, respectively. Prior to the acquisition by Cohu, Kita’s net sales for the

three

- and

nine

-month periods ended

September 24, 2016

were

$4.3

million and

$12.9

million, respectively.

Goodwill and Intangible Assets

Changes in the carrying value of goodwill during the year ended

December 31, 2016

and the

nine

-month period ended

September 30, 2017

were as follows

(

in thousands

	Goodwill
Balance, December 26, 2015	$	60,264
Impact of currency exchange		(1,415	)
Balance, December 31, 2016		58,849
Additions, net		3,142
Impact of currency exchange		3,492
Balance, September 30, 2017	$	65,483

Purchased intangible assets, subject to amortization are as follows

(

in thousands

)

	September 30, 2017						December 31, 2016
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (in years)		Amount		Amort.
Developed technology	$	20,785	$	11,977		3.6	$	19,195	$	9,597
Customer relationships		7,935		4,582		3.3		6,996		3,644
Trade names		6,139		849		12.4		5,353		468
Covenant not-to-compete		312		23		9.3		-		-
Backlog		104		78		0.3		-		-
Total intangible assets	$	35,275	$	17,509			$	31,544	$	13,709

Amortization expense related to intangible assets was approximately

$1.1

million in the

third

quarter of fiscal

2017

and

$3.2

million in the

first

nine

months of fiscal

2017.

Amortization expense related to intangible assets was approximately

$1.8

million in the

third

quarter of fiscal

2016

and

$5.4

million in the

first

nine

months of fiscal

2016.

The year-over-year decrease in amortization is a result of certain intangible assets that became fully amortized in the prior year. Changes in the carrying values of these intangible assets are a result of the impact of fluctuations in currency exchange rates.

Note 3 - Financial Instruments Measured at Fair Value

9 Months Ended

Sep. 30, 2017

Fair Value, Measurement Inputs, Disclosure [Text Block]

3.	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 30, 2017
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Corporate debt securities (2)	$	9,843	$	1	$	2	$	9,842
U.S. Treasury securities		4,596		-		-		4,596
Bank certificates of deposit		1,299		-		-		1,299
Foreign government security		603		-		-		603
	$	16,341	$	1	$	2	$	16,340

	December 31, 2016
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Corporate debt securities (2)	$	22,513	$	1	$	6	$	22,508
Government-sponsored enterprise securities		8,109		-		1		8,108
Bank certificates of deposit		750		1		-		751
Foreign government security		623		-		-		623
	$	31,995	$	2	$	7	$	31,990

	( 1 )	As of September 30, 2017, there were $7.5 million of investments in our portfolio in a loss position. As of December 31, 2016, the cost and fair value of investments with loss positions were approximately $26.6 million. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.

	( 2 )	Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Effective maturities of short-term investments are as follows

(in thousands)

	September 30, 2017				December 31, 2016
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	16,341	$	16,340	$	31,372	$	31,367
Due after one year through three years		-		-		623		623
	$	16,341	$	16,340	$	31,995	$	31,990

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

defined as observable inputs such as quoted prices in active markets; Level

defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level

defined as unobservable inputs in which little or

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

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

The following table summarizes, by major security type, our financial instruments 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 30, 2017 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	98,678	$	-	$	-	$	98,678
U.S. Treasury securities		-		4,596		-		4,596
Corporate debt securities		-		19,329		-		19,329
Money market funds		-		13,820		-		13,820
Bank certificates of deposit		-		1,298		-		1,298
Foreign government security		-		603		-		603
	$	98,678	$	39,646	$	-	$	138,324

	Fair value measurements at December 31, 2016 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	70,279	$	-	$	-	$	70,279
Foreign government security		-		623		-		623
Corporate debt securities		-		24,108		-		24,108
Government-sponsored enterprise securities		-		8,108		-		8,108
Money market funds		-		24,166		-		24,166
Bank certificates of deposit		-		751		-		751
	$	70,279	$	57,756	$	-	$	128,035

Note 4 - Employee Stock Benefit Plans

9 Months Ended

Sep. 30, 2017

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

4.	Employee Stock Benefit Plans

Our

2005

Equity Incentive Plan (the

“2005

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 stock units. We settle employee stock option exercises, employee stock purchase plan purchases, and the vesting of restricted stock units, and performance stock units with newly issued common shares. At

September 30, 2017,

there were

1,459,354

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 vest and become exercisable in annual increments that range from

one

four

years from the date of grant. Stock options granted under the

2015

Plan have a maximum contractual term of

ten

years.

the

first

nine

months of fiscal

2017

we did

not

grant any stock options and

we issued

930,883

shares of our common stock on the exercise of options that were granted previously.

September 30, 2017,

we had

705,284

stock options outstanding. These options had a weighted-average exercise price of

$10.61

per share, an aggregate intrinsic value of approximately

$4.8

million and the weighted average remaining contractual term was approximately

4.2

years.

September 30, 2017,

we had

701,951

stock options outstanding that were exercisable. These options had a weighted-average exercise price of

$10.61

per share, an aggregate intrinsic value of

$4.8

million and the weighted average remaining contractual term was approximately

4.2

years.

Restricted Stock Units

We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from

one

four

years from the date of grant. Prior to vesting, RSUs do

not

have dividend equivalent rights, do

not

have voting rights and the shares underlying the RSUs are

not

considered issued and outstanding. New shares of our common stock will be issued on the date the RSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding at

September 30, 2017.

the

first

nine

months of fiscal

2017

we awarded

349,956

RSUs and we issued

398,529

shares of our common stock on vesting of previously granted awards. At

September 30, 2017,

we had

1,014,145

RSUs outstanding with an aggregate intrinsic value of approximately

$17.7

million and the weighted average remaining vesting period was approximately

2.2

years.

Performance Stock Units

We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted in

2017

and

2016

ranges from

25%

200%

and is determined based on certain performance criteria over a

three

-year measurement period. For PSUs granted in

2015,

the number of shares of common stock issued to settle PSUs granted is determined based on a

two

-year measurement period. The performance criteria for the PSUs are based on a combination of our annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of our TSR compared with the annualized TSR of certain peer companies for the performance period. PSUs granted in

2017

and

2016

vest

100%

on the

third

anniversary of their grant and PSUs granted in

2015

vest

50%

on the

second

and

third

anniversary of their grant, respectively.

We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number outstanding

September 30, 2017.

the

first

nine

months of fiscal

2017,

we awarded

185,305

PSUs

and we issued

186,146

shares of our common stock on vesting of previously granted awards. At

September 30, 2017,

we had

357,333

PSUs outstanding with an aggregate intrinsic value of approximately

$6.2

million and the weighted average remaining vesting period was approximately

1.6

years.

Employee Stock Purchase Plan

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

percent of the lower of the fair market value of Cohu common stock at the beginning or end of each

-month purchase period, subject to certain limits.

During the

first

nine

months of fiscal

2017,

61,313

shares of our common stock were sold to our employees under the Plan leaving

639,171

shares available for future issuance.

Note 5 - Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Text Block]

5.	Income Taxes

For the

three

and

nine

months ended

September 30, 2017,

we used the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year in computing our tax provision. The ETR on income from continuing operations for the

three

months ended

September 30, 2017

and

September 24, 2016

, was

17.3%

and

86.9%,

respectively, and

14.0%

and

65.8%

for the

nine

months ended

September 30, 2017

and

September 24, 2016

, respectively.

The tax provision on income from continuing operations in

2017

and

2016

differs from the U.S. federal statutory rate primarily due to the lack of a provision (benefit) on our domestic income (losses) as a result of our valuation allowance on deferred tax assets, foreign income taxed at different rates, changes in our deferred tax asset valuation allowance, state taxes and interest related to unrecognized tax benefits.

Other than for foreign currency exchange rate changes and the Kita acquisition, there was

material change to our unrecognized tax benefits and related accrued interest and penalties during the

three

- and

nine

-month periods ended

September 30, 2017

and

September 24, 2016.

Note 6 - Discontinued Operations

9 Months Ended

Sep. 30, 2017

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

6.	Discontinued Operations

June 2015,

we sold all of the outstanding stock of BMS for

$4.9

million in cash and up to

$2.5

million of contingent cash consideration. Our decision to sell this non-core business resulted from management’s determination that it was

longer a strategic fit within our organization. As part of the divestiture of BMS we recorded a long-term contingent consideration receivable that has been classified as Level

in the fair value hierarchy. See Note

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy.

The contingent consideration represents the estimated fair value of future payments we are due from the buyer should BMS achieve specified annual revenue targets in certain years as specified in the sale agreement. The periodic fair value of the contingent consideration is determined through the use of the Monte Carlo simulation model. Based on updated information the contingent consideration receivable was adjusted in the

second

quarter of

2017

and is included in the loss from sale of BMS amount below.

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,			September 24,
	2017		2016		2017			2016

Net sales	$	-	$	-	$	-		$	-

Operating loss before income taxes		-		-		-			-
Loss from sale of BMS		-		51		(278	)		(4	)
Loss before taxes		-		51		(278	)		(4	)
Income tax provision		-		-		-			-
Loss, net of tax	$	-	$	51	$	(278	)	$	(4	)

Note 7 - Contingencies

9 Months Ended

Sep. 30, 2017

Contingencies Disclosure [Text Block]

7.	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 business. The outcome of any litigation is inherently uncertain. While there can be

assurance, we do

not

believe at the present time that the resolution of these matters will have a material adverse effect on our assets, financial position or results of operations.

Note 8 - Guarantees and Other Obligations

9 Months Ended

Sep. 30, 2017

Commitments Contingencies and Guarantees [Text Block]

8.	Guarantees and Other Obligations

Product Warranty

Our products are generally sold with warranty periods that range from

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 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016
Balance at beginning of period	$	5,070		$	5,118		$	4,350		$	4,886
Warranty expense accruals		1,720			1,320			5,446			4,586
Warranty payments		(1,773	)		(1,401	)		(4,829	)		(4,435	)
Warranty liability assumed		-			-			50			-
Balance at end of period	$	5,017		$	5,037		$	5,017		$	5,037

Accrued warranty amounts expected to be incurred after

one

year are

included in noncurrent other accrued liabilities in the condensed consolidated balance sheet. These amounts total

$0.7

million at

September 30, 2017

and

$0.6

million at

December 31, 2016.

Borrowings

Revolving Lines of Credit

As a result of the Acquisition, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to

$6.2

million. At

September 30, 2017,

total borrowings outstanding under the revolving lines of credit were

$3.1

million. As these credit facility agreements renew monthly, they have been included in short-term borrowings in our condensed consolidated balance sheet. The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Term Loans

As a result of the Acquisition, we assumed certain term loans from a series of Japanese financial institutions that had an aggregate amount outstanding of

$6.2

million as of

September 30, 2017

primarily related to the expansion of Kita’s facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from

0.05%

0.45%,

and expire at various dates through

2034.

September 30, 2017,

$1.3

million of the term loans have been included in current installments of long-term debt in our condensed consolidated balance sheet.

The fair value of our debt approximates the carrying value at

September 30, 2017.

The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates.

Lines of Credit

We have

two

available lines of credit, which provide

one

of our wholly owned subsidiaries with borrowings up to

2.5

million Swiss Francs. At

September 30, 2017

and

December 31, 2016,

amounts were outstanding under the lines of credit.

Standby Letters of Credit

During the ordinary course of business, from time-to-time we provide standby letters of credit instruments to certain parties as required. As of

September 30, 2017,

amounts were outstanding under standby lines of credit.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

Our fiscal years are based on a

- or

-week period ending on the last Saturday in

December.

The condensed consolidated balance sheet at

December 31, 2016

has been derived from our audited financial statements at that date. The interim condensed consolidated financial statements as of

September 30, 2017 (

also referred to as “the

third

quarter of fiscal

2017”

and “the

first

nine

months of fiscal

2017”

) and

September 24, 2016 (

also referred to as “the

third

quarter of fiscal

2016”

and “the

first

nine

months of fiscal

2016”

) are unaudited. However, in management

three

- and

nine

-month periods ended

September 30, 2017

were comprised of

and

weeks, respectively. The

three

- and

nine

-month periods ended

September 24, 2016

were comprised of

and

weeks, respectively.

Our interim results are

not

necessarily indicative of the results that should be expected for the full year. For

December 31, 2016,

which are included in our

2016

Annual Report on Form

Certain prior year amounts have been restated as a result of our early adoption of Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation - Stock Compensation (Topic

718

Improvements to Employee Share-Based Payment Accounting

(ASU

2016

). While the effective date of ASU

2016

was for fiscal years beginning after

December 15, 2016,

earlier adoption was permitted and we elected to adopt ASU

2016

during the

fourth

quarter of fiscal

2016.

As part of our adoption of ASU

2016

three

- and

nine

-month periods ended

September 24, 2016

were revised and were approximately

$0.1

million and

$15,000

higher in each period, respectively, under the new method, than what was previously reported.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

June 2015,

we sold our microwave communications equipment segment, Broadcast Microwave Services, Inc. (“BMS”). See Note

“Discontinued Operations” for additional information. Unless otherwise indicated, all amounts herein relate to continuing operations.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

one

issuer.

Trade accounts receivable are presented net of allowance for doubtful accounts of

$0.1

million at both

September 30, 2017

and

December 31, 2016.

September 30, 2017,

we will continue to monitor customer liquidity and other economic conditions, which

may

result in changes to our estimates regarding collectability.

Segment Reporting, Policy [Policy Text Block]

Segment Information

We applied the provisions of ASC Topic

280,

Segment Reporting

, (“ASC

280”

280,

we have determined that our identified operating segments qualify for aggregation under ASC

280

due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in

one

segment, semiconductor equipment and the financial information disclosed herein materially represents all of the financial information related to our semiconductor equipment segment.

Goodwill and Intangible Assets, Policy [Policy Text Block]

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

We conduct our annual impairment test as of

October

1st

of each year, and have determined there was

impairment as of

October

2016

as we determined that the estimated fair values of our reporting units exceeded their carrying values on that date. Other events and changes in circumstances

may

also require goodwill to be tested for impairment between annual measurement dates.

As of

September 30, 2017,

we do

not

believe that circumstances have occurred that indicate impairment of our goodwill is more-likely-than-

not.

In the event we determine that an interim goodwill impairment review is required in a future period, the review

may

result in an impairment charge, which would have a negative impact on our results of operations.

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

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 carrying amount and estimated fair value.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Remeasurement and

Currency Translation

the

three

and

nine

months ended

September 30, 2017,

we recognized foreign exchange losses of

$0.2

million and

$2.7

million, respectively, in our condensed consolidated statements of income. During the

three

and

nine

months

ended

September 24, 2016,

we recognized approximately

$0.3

million and

$1.0

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

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 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016
Cost of sales	$	123		$	101		$	327		$	309
Research and development		278			327			856			955
Selling, general and administrative		1,459			1,330			4,153			4,027
Total share-based compensation		1,860			1,758			5,336			5,291
Income tax benefit		(107	)		(76	)		(429	)		(189	)
Total share-based compensation, net	$	1,753		$	1,682		$	4,907		$	5,102

Earnings Per Share, Policy [Policy Text Block]

Income (Loss) Per Share

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 30, 2017,

options to issue approximately

5,000

and

103,000

shares of common stock were excluded from the computation, respectively. For the

three

and

nine

months ended

September 24, 2016,

options to issue approximately

707,000

and

752,000

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 30,		September 24,		September 30,		September 24,
	2017		2016		2017		2016
Weighted average common shares		28,155		26,761		27,614		26,596
Effect of dilutive securities		950		606		1,026		786
		29,105		27,367		28,640		27,382

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Revenue for established products that have previously satisfied a customer

’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In certain instances, customer payment terms

may

provide that a minority portion (e.g. up to

20%

) of the equipment purchase price be paid only upon customer acceptance. In those situations, the majority portion (e.g.

80%

not

Certain of our equipment sales are accounted for as multiple-element arrangements. A multiple-element arrangement is a transaction which

may

involve the delivery or performance of multiple products, services, or rights to use assets, and performance

may

occur at different points in time or over different periods of time.

not

contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment.

On shipments where sales are

not

recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped.

September 30, 2017,

we had deferred revenue totaling approximately

$9.9

million and deferred profit of

$6.7

million. At

December 31, 2016,

we had deferred revenue totaling approximately

$9.3

million and deferred profit of

$6.9

A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016

Customers individually accounting for more than 10% of net sales		two			three			two			two

Percentage of net sales		26.5	%		37.4	%		28.5	%		30.5	%

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

Our accumulated other comprehensive loss balance totaled approximately

$18.0

million and

$27.9

million at

September 30, 2017

and

December 31, 2016,

not

the U.S. Dollar

and adjustments related to postretirement benefits. Reclassification adjustments from accumulated other comprehensive loss

during the

three

- and

nine

-month periods ended of fiscal

2017

and

2016

were

not

significant.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

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

2017

and

2016

was

not

significant.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

–

July 2015,

the Financial Accounting Standards Board (“FASB”) issued ASU

No.

2015

11,

Simplifying the Measurement of Inventory

not

have a material impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

– In

March 2017,

the FASB issued ASU

No.

2017

07,

Compensation – Retirement Benefits (Topic

715

) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

December 15, 2017,

including interim periods within those annual periods; early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have

not

January 2017,

the FASB issued ASU

No.

2017

04,

Simplifying the Test for Goodwill Impairment

. It eliminates Step

from the goodwill impairment test and requires an entity to recognize an impairment charge for the amount by which the carrying amount of goodwill exceeds the reporting unit's fair value,

not

to exceed the carrying amount of goodwill. This guidance is effective for annual and any interim impairment tests in fiscal years beginning after

December 15, 2019.

We do

not

expect this guidance to have any impact on our consolidated financial statements.

January 2017,

the FASB issued ASU

No.

2017

01,

Clarifying the Definition of a Business.

December 15, 2017.

We do

not

expect this guidance to have any impact on our consolidated financial statements.

November 2016,

the FASB issued ASU

No.

2016

18,

Restricted Cash.

December 15, 2017.

We do

not

expect this guidance to have a material impact on our consolidated financial statements.

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments.

It provides guidance on

eight

December 15, 2017.

Early adoption is permitted, provided that all of the amendments are adopted in the same period. We do

not

expect this guidance to have a material impact on our consolidated financial statements.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

December 15, 2018.

May 2014,

the FASB issued Accounting Standards Update

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(ASU

2014

)

, which amends the existing accounting standards for revenue recognition. In

August 2015,

the FASB issued ASU

No.

2015

14,

Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date

, which delays the effective date of

ASU

2014

one

year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In

March 2016,

the FASB issued Accounting Standards Update

No.

2016

08,

Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU

2016

)

first

quarter of

2018.

We will adopt the new standard effective

December 31, 2017,

which is the

first

day of our

2018

fiscal year. The new standard also permits

two

may

occur sooner under the new model.

When adopting the new standard, on

December 31, 2017,

revenue that was

not

recognized in fiscal

2017,

because the equipment had

not

know the impact on future revenues and associated operating income at this time. However, revenues, deferred profit, cost of sales, and associated operating income

may

be materially impacted depending on the timing of customer acceptance.

Note 1 - Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016
Cost of sales	$	123		$	101		$	327		$	309
Research and development		278			327			856			955
Selling, general and administrative		1,459			1,330			4,153			4,027
Total share-based compensation		1,860			1,758			5,336			5,291
Income tax benefit		(107	)		(76	)		(429	)		(189	)
Total share-based compensation, net	$	1,753		$	1,682		$	4,907		$	5,102

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,		September 24,
	2017		2016		2017		2016
Weighted average common shares		28,155		26,761		27,614		26,596
Effect of dilutive securities		950		606		1,026		786
		29,105		27,367		28,640		27,382

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016

Customers individually accounting for more than 10% of net sales		two			three			two			two

Percentage of net sales		26.5	%		37.4	%		28.5	%		30.5	%

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Cash paid to Kita shareholders	$	15,000
Fair value of contingent consideration		823
Total purchase price	$	15,823

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Fair Value of

Mark to Market

Fair Value of

Consideration

Settlement of

Adjustment

Impact of

Consideration at

Recognized at

Contingent

Charged to

Currency

September 30,

Acquisition Date

Consideration

Expense

Exchange

2017

Kita

823

668

1,500

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Current assets, including cash received	$	10,491
Property, plant and equipment		12,751
Other assets		2,291
Intangible assets subject to amortization		2,100
Goodwill		3,142
Total assets acquired		30,775
Liabilities assumed		(14,952	)
Net assets acquired	$	15,823

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

			Average
	Estimated		Useful Life
Description	Fair Value		(in years)
Developed technology	$	700		8
Customer relationships		600		4
Covenant not-to-compete		300		10
Product backlog		100		1
Trade names		400		5
	$	2,100

Schedule of Goodwill [Table Text Block]

	Goodwill
Balance, December 26, 2015	$	60,264
Impact of currency exchange		(1,415	)
Balance, December 31, 2016		58,849
Additions, net		3,142
Impact of currency exchange		3,492
Balance, September 30, 2017	$	65,483

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	September 30, 2017						December 31, 2016
					Remaining
					Weighted
	Gross				Average		Gross
	Carrying		Accum.		Amort.		Carrying		Accum.
	Amount		Amort.		Period (in years)		Amount		Amort.
Developed technology	$	20,785	$	11,977		3.6	$	19,195	$	9,597
Customer relationships		7,935		4,582		3.3		6,996		3,644
Trade names		6,139		849		12.4		5,353		468
Covenant not-to-compete		312		23		9.3		-		-
Backlog		104		78		0.3		-		-
Total intangible assets	$	35,275	$	17,509			$	31,544	$	13,709

Note 3 - Financial Instruments Measured at Fair Value (Tables)

9 Months Ended

Sep. 30, 2017

Available-for-sale Securities [Table Text Block]

	September 30, 2017
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Corporate debt securities (2)	$	9,843	$	1	$	2	$	9,842
U.S. Treasury securities		4,596		-		-		4,596
Bank certificates of deposit		1,299		-		-		1,299
Foreign government security		603		-		-		603
	$	16,341	$	1	$	2	$	16,340

	December 31, 2016
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses (1)		Value
Corporate debt securities (2)	$	22,513	$	1	$	6	$	22,508
Government-sponsored enterprise securities		8,109		-		1		8,108
Bank certificates of deposit		750		1		-		751
Foreign government security		623		-		-		623
	$	31,995	$	2	$	7	$	31,990

Investments Classified by Contractual Maturity Date [Table Text Block]

	September 30, 2017				December 31, 2016
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	16,341	$	16,340	$	31,372	$	31,367
Due after one year through three years		-		-		623		623
	$	16,341	$	16,340	$	31,995	$	31,990

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair value measurements at September 30, 2017 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	98,678	$	-	$	-	$	98,678
U.S. Treasury securities		-		4,596		-		4,596
Corporate debt securities		-		19,329		-		19,329
Money market funds		-		13,820		-		13,820
Bank certificates of deposit		-		1,298		-		1,298
Foreign government security		-		603		-		603
	$	98,678	$	39,646	$	-	$	138,324

	Fair value measurements at December 31, 2016 using:
							Total estimated
	Level 1		Level 2		Level 3		fair value
Cash	$	70,279	$	-	$	-	$	70,279
Foreign government security		-		623		-		623
Corporate debt securities		-		24,108		-		24,108
Government-sponsored enterprise securities		-		8,108		-		8,108
Money market funds		-		24,166		-		24,166
Bank certificates of deposit		-		751		-		751
	$	70,279	$	57,756	$	-	$	128,035

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.

Note 6 - Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2017

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,		September 24,		September 30,			September 24,
	2017		2016		2017			2016

Net sales	$	-	$	-	$	-		$	-

Operating loss before income taxes		-		-		-			-
Loss from sale of BMS		-		51		(278	)		(4	)
Loss before taxes		-		51		(278	)		(4	)
Income tax provision		-		-		-			-
Loss, net of tax	$	-	$	51	$	(278	)	$	(4	)

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Note 8 - Guarantees and Other Obligations (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30,			September 24,			September 30,			September 24,
	2017			2016			2017			2016
Balance at beginning of period	$	5,070		$	5,118		$	4,350		$	4,886
Warranty expense accruals		1,720			1,320			5,446			4,586
Warranty payments		(1,773	)		(1,401	)		(4,829	)		(4,435	)
Warranty liability assumed		-			-			50			-
Balance at end of period	$	5,017		$	5,037		$	5,017		$	5,037

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016	Dec. 31, 2016
Allowance for Doubtful Accounts Receivable, Current		$ 100,000		$ 100,000		$ 100,000
Number of Operating Segments				1
Goodwill and Intangible Asset Impairment	$ 0
Foreign Currency Transaction Gain (Loss), Realized		(200,000)	$ (300,000)	$ (2,700,000)	$ (1,000,000)
Percentage of Revenue Recognized upon Customer Acceptance				20.00%
Percentage of Revenue Recognized upon Shipment and Passage of Title				80.00%
Deferred Revenue		9,900,000		$ 9,900,000		9,300,000
Other Deferred Credits, Current		6,700,000		6,700,000		6,900,000
Accumulated Other Comprehensive Income (Loss), Net of Tax		$ (18,016,000)		$ (18,016,000)		$ (27,882,000)
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		5,000	707,000	103,000	752,000
Adjustments for New Accounting Principle, Early Adoption [Member]
Prior Period Reclassification Adjustment			$ 100,000		$ 15,000

Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Allocated share-based compensation	$ 1,860	$ 1,758	$ 5,336	$ 5,291
Income tax benefit	(107)	(76)	(429)	(189)
Total share-based compensation, net	1,753	1,682	4,907	5,102
Cost of Sales [Member]
Allocated share-based compensation	123	101	327	309
Research and Development Expense [Member]
Allocated share-based compensation	278	327	856	955
Selling, General and Administrative Expenses [Member]
Allocated share-based compensation	$ 1,459	$ 1,330	$ 4,153	$ 4,027

Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Weighted average common shares (in shares)	28,155	26,761	27,614	26,596
Effect of dilutive securities (in shares)	950	606	1,026	786
(in shares)	29,105	27,367	28,640	27,382

Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Customers individually accounting for more than 10% of net sales	2	3	2	2
Two Customers [Member]
Percentage of net sales	26.50%		28.50%	30.50%
Three Customers [Member]
Percentage of net sales		37.40%

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Amortization of Intangible Assets	$ 1.1	$ 1.8	$ 3.2	$ 5.4
Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member]
Revenues	5.3	$ 4.3	14.4	12.9
Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 3.0		3.0
Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member] \| Selling, General and Administrative Expenses [Member]
Business Combination, Acquisition Related Costs			$ 1.0	$ 0.9

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Total Purchase Price (Details) - Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member] $ in Thousands	Jan. 04, 2017 USD ($)
Cash paid to Kita shareholders	$ 15,000
Fair value of contingent consideration	823
Total purchase price	$ 15,823

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 24, 2016
Mark to market adjustment to Kita contingent consideration liability		$ 668
Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member]
Balance for contingent consideration	$ 823
Settlement of contingent consideration
Mark to market adjustment to Kita contingent consideration liability	668
Impact of currency exchange	9
Balance for contingent consideration	$ 1,500	$ 1,500

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Purchase Price Allocation (Details) - USD ($)
$ in Thousands

Sep. 30, 2017

Jan. 04, 2017

Dec. 31, 2016

^[1]

Dec. 26, 2015

Goodwill

$ 65,483

$ 58,849

$ 60,264

Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member]

Current assets, including cash received

$ 10,491

Property, plant and equipment

12,751

Other assets

2,291

Intangible assets subject to amortization

2,100

Goodwill

3,142

Total assets acquired

30,775

Liabilities assumed

(14,952)

Net assets acquired

$ 15,823

[1]	Derived from December 31, 2016 audited financial statements

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Preliminary Allocation of Intangible Assets (Details) - Kita Manufacturing Co. LTD. and Kita USA, Inc. [Member] $ in Millions	Jan. 04, 2017 USD ($)
Finite-lived intangible assets, estimated fair value	$ 2.1
Developed Technology Rights [Member]
Finite-lived intangible assets, estimated fair value	$ 0.7
Finite-lived intangible assets, average useful life (Year)	8 years
Customer Relationships [Member]
Finite-lived intangible assets, estimated fair value	$ 0.6
Finite-lived intangible assets, average useful life (Year)	4 years
Noncompete Agreements [Member]
Finite-lived intangible assets, estimated fair value	$ 0.3
Finite-lived intangible assets, average useful life (Year)	10 years
Order or Production Backlog [Member]
Finite-lived intangible assets, estimated fair value	$ 0.1
Finite-lived intangible assets, average useful life (Year)	1 year
Trade Names [Member]
Finite-lived intangible assets, estimated fair value	$ 0.4
Finite-lived intangible assets, average useful life (Year)	5 years

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2017

Dec. 31, 2016

Beginning balance

$ 58,849

^[1]

$ 60,264

Impact of currency exchange

3,492

(1,415)

Additions, net

3,142

Ending balance

$ 65,483

$ 58,849

^[1]

[1]	Derived from December 31, 2016 audited financial statements

Note 2 - Business Acquisitions, Goodwill and Other Purchased Intangible Assets - Purchased Intangible Assets, Subject to Amortization (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Gross Carrying Amount	$ 35,275	$ 31,544
Accumulated Amortization	17,509	13,709
Developed Technology Rights [Member]
Gross Carrying Amount	20,785	19,195
Accumulated Amortization	$ 11,977	9,597
Remaining Useful Life (Year)	3 years 219 days
Customer Relationships [Member]
Gross Carrying Amount	$ 7,935	6,996
Accumulated Amortization	$ 4,582	3,644
Remaining Useful Life (Year)	3 years 109 days
Trade Names [Member]
Gross Carrying Amount	$ 6,139	5,353
Accumulated Amortization	$ 849	468
Remaining Useful Life (Year)	12 years 146 days
Noncompete Agreements [Member]
Gross Carrying Amount	$ 312
Accumulated Amortization	$ 23
Remaining Useful Life (Year)	9 years 109 days
Order or Production Backlog [Member]
Gross Carrying Amount	$ 104
Accumulated Amortization	$ 78
Remaining Useful Life (Year)	109 days

Note 3 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 7.5	$ 26.6

Note 3 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($)
$ in Thousands

Sep. 30, 2017

Dec. 31, 2016

$ 16,341

$ 31,995

^[1]

Corporate Debt Securities [Member]

16,340

31,990

^[2]

^[3]

9,843

22,513

^[3]

^[1],[3]

US Treasury Securities [Member]

^[3]

9,842

22,508

4,596

^[1]

US Government-sponsored Enterprises Debt Securities [Member]

4,596

8,109

^[1]

Certificates of Deposit [Member]

8,108

1,299

750

^[1]

Foreign Government Debt Securities [Member]

1,299

751

603

623

^[1]

$ 603

$ 623

[1]	As of September 30, 2017, there were $7.5 million of investments in our portfolio in a loss position. As of December 31, 2016, the cost and fair value of investments with loss positions were approximately $26.6 million. We evaluated the nature of these investments, credit worthiness of the issuer and the duration of these impairments to determine if an other-than-temporary decline in fair value had occurred and concluded that these losses were temporary and we have the ability and intent to hold these investments to maturity.
[2]	Derived from December 31, 2016 audited financial statements
[3]	Corporate debt securities include investments in financial and other corporate institutions. No single issuer represents a significant portion of the total corporate debt securities portfolio.

Note 3 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Due in one year or less, amortized cost	$ 16,341	$ 31,372
Due in one year or less, estimated fair value	16,340	31,367
Due after one year through three years, amortized cost		623
Due after one year through three years, estimated fair value		623
Total amortized cost	16,341	31,995
Total estimated fair value	$ 16,340	$ 31,990

Note 3 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
	$ 138,324	$ 128,035
US Treasury Securities [Member]
Short-term investments	4,596
Foreign Government Debt Securities [Member]
Short-term investments	603	623
Corporate Debt Securities [Member]
Short-term investments	19,329	24,108
US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments		8,108
Certificates of Deposit [Member]
Short-term investments	1,298	751
Cash [Member]
Cash and cash equivalents	98,678	70,279
Money Market Funds [Member]
Cash and cash equivalents	13,820	24,166
Fair Value, Inputs, Level 1 [Member]
	98,678	70,279
Fair Value, Inputs, Level 1 [Member] \| US Treasury Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Certificates of Deposit [Member]
Short-term investments
Fair Value, Inputs, Level 1 [Member] \| Cash [Member]
Cash and cash equivalents	98,678	70,279
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member]
	39,646	57,756
Fair Value, Inputs, Level 2 [Member] \| US Treasury Securities [Member]
Short-term investments	4,596
Fair Value, Inputs, Level 2 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments	603	623
Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Short-term investments	19,329	24,108
Fair Value, Inputs, Level 2 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments		8,108
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Short-term investments	1,298	751
Fair Value, Inputs, Level 2 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Cash and cash equivalents	13,820	24,166
Fair Value, Inputs, Level 3 [Member]

Fair Value, Inputs, Level 3 [Member] \| US Treasury Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Foreign Government Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Corporate Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Certificates of Deposit [Member]
Short-term investments
Fair Value, Inputs, Level 3 [Member] \| Cash [Member]
Cash and cash equivalents
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Cash and cash equivalents

Note 4 - Employee Stock Benefit Plans (Details Textual) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,459,354
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	930,883
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	705,284
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price \| $ / shares	$ 10.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value \| $	$ 4.8
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	701,951
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price \| $ / shares	$ 10.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value \| $	$ 4.8
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 73 days
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	639,171
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	61,313
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Stock Option [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Employee Stock Option [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	349,956
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	398,529
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,014,145
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding \| $	$ 17.7
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms	2 years 73 days
Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	185,305
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	186,146
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	357,333
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding \| $	$ 6.2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms	1 year 219 days
Performance Shares [Member] \| Awards Granted in 2017 and 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Performance Shares [Member] \| Awards Granted in 2017 and 2016 [Member] \| Vest on the Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Performance Shares [Member] \| Awards Granted in 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	2 years
Performance Shares [Member] \| Awards Granted in 2015 [Member] \| Vest on the Second and Third Anniversary of Awards Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Performance Shares [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue	25.00%
Performance Shares [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue	200.00%

Note 5 - Income Taxes (Details Textual)	3 Months Ended		9 Months Ended
Note 5 - Income Taxes (Details Textual)	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Effective Income Tax Rate Reconciliation, Percent	17.30%	86.90%	14.00%	65.80%

Note 6 - Discontinued Operations (Details Textual) - Broadcast Microwave Services, Inc. (“BMS”) [Member] $ in Millions	1 Months Ended
	Jun. 30, 2015 USD ($)
Proceeds from Divestiture of Businesses	$ 4.9
Disposal Group, Including Discontinued Operation, Contingent Consideration	$ 2.5

Note 6 - Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Loss, net of tax		$ 51	$ (278)	$ (4)
Broadcast Microwave Services, Inc. (“BMS”) [Member]
Net sales
Operating loss before income taxes
Gain (loss) from disposal of segment		51	(278)	(4)
Loss before taxes		51	(278)	(4)
Income tax provision
Loss, net of tax		$ 51	$ (278)	$ (4)

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation attributable to the parent. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.