Financial Analysis

COMMITMENTS AND CONTINGENCIES Commitments The Company leases real estate and equipment under various non-cancelable operating leases. Contingencies From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims individually or in the aggregate cannot be predicted with certainty, the Company has not had a history of outcomes to date that have been material to the Condensed Consolidated Statements of Operations and does not believe that any of these proceedings or other claims will have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

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LONG-TERM DEBT Long-term debt was as follows: (In millions) March 27, 2026 December 26, 2025 Term loan $ 19.4 $ 481.4 Convertible Notes 600.0 Total debt $ 619.4 $ 481.4 Current portion, net (9.9) Debt issuance costs (17.5) (4.5) Total long-term debt, net of debt issuance costs $ 601.9 $ 467.0 Term Loan and Revolving Credit Facilities On February 26, 2026, the Company entered into the Ninth Amendment to the Credit Agreement, dated as of August 27, 2018 (as amended, the Credit Agreement), which temporarily increased the maximum permitted Consolidated Total Gross Leverage Ratio financial maintenance covenant (applicable only to the revolving credit facility) to 6.00 to 1.00 for the fiscal periods ending on or about March 31, 2026 and June 30, 2026, subject to the terms and conditions set forth in the amendment. The term loan facility matures on February 25, 2028 and requires quarterly principal payments of 0.625% of the outstanding principal balance, with the remaining principal paid upon maturity. During the quarter ended March 27, 2026, the Company made a voluntary prepayment of $459.0 million on its term loan facility. In connection with the prepayment, the Company wrote off $3.0 million of unamortized debt issuance costs related to the prepaid portion of the term loan. The remaining unamortized debt issuance costs continue to be amortized over the remaining term of the facility. As of March 27, 2026, the outstanding balance under the Term Loan of $19.4 million, and the inter …

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EMPLOYEE STOCK PLANS Employee Stock Plans The Company grants stock awards in the form of restricted stock units (RSUs) and performance stock units (PSUs) to its employees as part of the Companys long-term equity compensation plan. These stock awards are granted to employees with a unit purchase price of zero dollars and typically vest over three years, subject to the employees continued service with the Company and, in the case of PSUs, subject to achieving certain performance goals and market conditions. The Company also grants common stock to its board members in the form of restricted stock awards (RSAs), which vest on the earlier of the next Annual Shareholder Meeting, or 365 days from date of grant. The aggregate number of shares authorized for issuance under the plan is 12.6 million. Stock-based compensation expense includes compensation costs related to estimated fair values of awards granted. The estimated fair value of the Companys equity-based awards is amortized on a straight-line basis over the awards vesting period and is adjusted for performance as it relates to PSUs. The following table shows the Companys stock-based compensation expense included in the Condensed Consolidated Statements of Operations: Three Months Ended (In millions) March 27, 2026 March 28, 2025 Cost of revenues (1) $ 0.8 $ 0.4 Research and development 0.1 0.1 Sales and marketing 0.4 0.5 General and administrative 1.9 1.9 Total stock-based compensation $ 3.2 $ 2.9 (1) Stock-based compensation …

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GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the consideration transferred over the fair value of tangible and identifiable intangible assets acquired, less liabilities assumed in a business combination. During the three months ended March 27, 2026, the Company did not recognize any impairment charges or additions to goodwill. Details of aggregate goodwill of the Company are as follows: (In millions) Products Services Total Balance at December 26, 2025 $ 114.2 $ $ 114.2 Balance at March 27, 2026 $ 114.2 $ $ 114.2 Intangible Assets Intangible assets are generally recorded in connection with business acquisitions and are amortized over their estimated useful lives. The Company evaluates the useful lives of its intangible assets each reporting period and reviews such assets for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Details of intangible assets were as follows: As of March 27, 2026 As of December 26, 2025 (Dollars in millions) Useful Life (In years) Gross Carrying Amount Accumulated Amortization Carrying Value Gross Carrying Amount Accumulated Amortization Carrying Value Customer relationships 6 - 10 $ 207.2 $ (140.0) $ 67.2 $ 207.2 $ (135.6) $ 71.6 Recipes 20 73.2 (27.8) 45.4 73.2 (26.8) 46.4 Intellectual property/know-how 7 - 15 48.9 (28.3) 20.6 48.9 (27.2) 21.7 Tradename 4 - 6* 32.5 (23.5) 9.0 32.5 (23.4) 9.1 Standard operating procedures 20 8.6 (3.3) 5.3 8.6 (3.2) 5.4 Developed …

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INCOME TAXES The Company recorded income tax provision of $19.2 million and $7.4 million for the three months ended March 27, 2026 and March 28, 2025, respectively. The Companys effective tax rate was 457.1% and 151.0% for the three months ended March 27, 2026 and March 28, 2025, respectively. The change in respective tax rates reflects, primarily, the impact of a planned distribution of earnings from one of the Companys foreign subsidiaries in the current year, changes in the geographic mix of worldwide earnings and financial results in jurisdictions which are taxed at different rates and the impact of losses in jurisdictions with full valuation allowances on deferred tax assets. Company management continuously evaluates the need for a valuation allowance and, as of March 27, 2026, concluded that a valuation allowance on its U.S. federal, state and certain foreign deferred tax assets was still appropriate. The provision for income taxes for the three months ended March 27, 2026 includes the impact of a change in the Companys assertion regarding the permanent reinvestment of undistributed earnings of one of its China subsidiaries. The Company no longer considers the China subsidiarys undistributed earnings generated prior to fiscal year 2022 permanently reinvested. As a result of this change in assertion, the Company recorded a discrete income tax expense of $14.8 million in the quarter ended March 27, 2026. As of March 27, 2026 and December 26, 2025, the Companys gross liabi …

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LEASESThe Company leases land, offices, facilities and equipment in locations throughout the United States, Asia Pacific and EMEA.

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Accounting Standards Recently Adopted In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient for estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. This guidance is to be applied prospectively and is effective for annual periods, including interim periods, beginning after December 15, 2025, with early adoption permitted. The Company adopted this standard in the first quarter of 2026. The adoption did not have a material impact on the Companys consolidated financial statements or related disclosures. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU No. 2024-03) which requires entities to provide disaggregated disclosure of certain expense categories within relevant income statement captions, including, but not limited to, inventory purchases, employee compensation, depreciation, amortization, and depletion. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic …

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RETIREMENT PLANS Defined Benefit Plans Cinos Korea has a noncontributory defined benefit pension plan covering substantially all of its employees upon their retirement. The Companys entities in Israel also have noncontributory defined benefit pension plans covering their employees upon their retirement. The benefits for these plans are based on expected years of service and average compensation. The net period costs are recognized as employees render the services necessary to earn the postretirement benefits. The Company records annual amounts relating to the pension plan based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current and expected rates of return and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in accumulated other comprehensive income and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under the plans are reasonable based on its experience and market conditions. As of March 27, 2026, the benefit obligation of the plans was $15.0 million and the fair value of the benefit plan assets was $12.9 million which are invested in several fixed deposit accounts with financi …

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REVENUE RECOGNITION Revenue is recognized when the Company satisfies the performance obligations as evidenced by the transfer of control of the promised goods or services to the Companys customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company sells its products and services primarily to customers in the semiconductor capital equipment industry. The Companys revenues are highly concentrated and therefore highly dependent upon a small number of customers. Typical payment terms with our customers range from thirty to sixty days. The Companys products are manufactured and services are provided at the Companys locations throughout the Americas, Asia Pacific and Europe and the Middle East (EMEA). Sales to customers are initiated through a purchase order and are governed by our standard terms and conditions, written agreements, or both. Revenue is recognized when performance obligations under the terms of an agreement with a customer are satisfied; generally, this occurs with the transfer of control of the products or when the Company provides the services. Under the Companys contracts with customers, the Company does not have an enforceable right to payment that includes a reasonable profit throughout the contract term for products it manufactures that have no alternative use. Consignment sales are recognized in revenue at the earlier of the period that the goods are consumed or after a perio …

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REPORTABLE SEGMENTS The Companys Chief Executive Officer is the Companys chief operating decision maker (CODM). The CODM primarily uses income from operations to evaluate each segments performance and allocate resources, primarily through periodic budgeting and segment performance reviews. Significant expenses within segment operating profit include cost of revenue, research and development, and selling, general and administrative expenses, which are each separately presented on the Companys Condensed Consolidated Statements of Operations. The Companys reportable segments are determined based on the nature of their revenue streams and the Companys internal organization structure. The Company prepared financial results based on two operating segments (Products and Services) and two reportable segments (Products and Services). The following table describes each segment: Segment Product or Services Primary Markets Served Geographic Areas Products Assembly Weldments Machining Fabrication Semiconductor Americas Asia Pacific EMEA Services Cleaning Analytics Coating Semiconductor Americas Asia Pacific EMEA The CODM uses segment operating profit or loss to evaluate performance and to allocate capital resources. Segment operating profit or loss is defined as a segments income or loss from continuing operations before interest and other income (expense), net and provision for income taxes. Any intercompany sales and associated profit (and any other intercompany items) are eliminated fr …

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SUBSEQUENT EVENTS On April 23, 2026, the Company entered into the Tenth Amendment (the Tenth Amendment) to its Credit Agreement. The Tenth Amendment, among other things, increased the aggregate revolving credit commitment from $150.0 million to $250.0 million, extended the maturity date to April 23, 2031, reduced the applicable interest rate margin, and modified certain financial covenants and other provisions to provide additional flexibility. All other material terms of the Credit Agreement, including the term loan facility, remained unchanged. In addition, the Company prepaid the remaining $19.4 million outstanding under its term loan facility. …

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