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Business Segment, Geographic Area, Product Information and Significant Customer Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment, Geographic Area, Product Information and Significant Customer Information
(21)
Business Segment, Geographic Area, Product Information and Significant Customer Information

Reportable Segments and Products

The Company’s CODM, which is the Company’s Chief Executive Officer, utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. The Company has a diverse base of customers across its three end markets, semiconductor, electronics and packaging, and specialty industrial. Segment gross margin is the primary measure used by the CODM to assess segment performance and to decide how to allocate resources. The Company’s CODM assesses segment performance and decides how to allocate resources using segment gross margin among other measures. Gross margin is utilized to drive decisions in the annual forecasting process when making decisions about allocating capital and personnel to the segments.

The Company has three reporting segments, VSD, PSD and MSD as described below.

VSD delivers foundational technology solutions to semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products are derived from the Company’s core competencies in vacuum technologies, including pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and fiber optic temperature and position sensing.

PSD provides a broad range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, opto-mechanical components, optical elements, laser-based systems for flexible PCB laser processing, laser-based systems for high-density interconnect PCB and package substrate manufacturing.

MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Applying a comprehensive systems-and-solutions approach, MSD’s portfolio includes chemistry, equipment and services for innovative and high-technology applications in the electronics and packaging and specialty industrial markets.

The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company groups its product offerings by its reportable segments, VSD, PSD, and MSD. For each reportable segment, the Company also provides services relating to the maintenance and repair of its products, installation services and training. Unallocated corporate expenses represent those costs not specifically related to the operations of each segment and are managed separately at the corporate level and primarily relate to labor costs of global functions such as supply chain, quality control and operations.

The following tables sets forth the details of gross profit by reportable segment and then reconciles to income (loss) before income taxes for each year presented:

 

 

Year Ended December 31, 2024

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Product

 

$

1,144

 

 

$

856

 

 

$

1,124

 

 

$

3,124

 

Services

 

 

240

 

 

 

165

 

 

 

57

 

 

 

462

 

Revenues by segment

 

 

1,384

 

 

 

1,021

 

 

 

1,181

 

 

 

3,586

 

Total cost of revenues (exclusive of amortization shown separately below)(1)

 

 

790

 

 

 

563

 

 

 

519

 

 

 

1,872

 

Segment gross profit

 

 

594

 

 

 

458

 

 

 

662

 

 

 

1,714

 

Segment gross profit percentage

 

 

42.9

%

 

 

44.9

%

 

 

56.1

%

 

 

47.8

%

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

271

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

674

 

Acquisition and integrated costs

 

 

 

 

 

 

 

 

 

 

 

9

 

Restructuring and other

 

 

 

 

 

 

 

 

 

 

 

6

 

Fees and expenses related to repricing of Term Loan Facility

 

 

 

 

 

 

 

 

 

 

 

5

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

245

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

6

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

498

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

(21

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

284

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

57

 

Other (income) expense, net

 

 

 

 

 

 

 

 

 

 

 

(2

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

180

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Product

 

$

1,222

 

 

$

824

 

 

$

1,154

 

 

$

3,200

 

Services

 

 

218

 

 

 

152

 

 

 

52

 

 

 

422

 

Revenues by segment

 

 

1,440

 

 

 

976

 

 

 

1,206

 

 

 

3,622

 

Total cost of revenues (exclusive of amortization shown separately below)(1)

 

 

827

 

 

 

552

 

 

 

586

 

 

 

1,965

 

Segment gross profit

 

 

613

 

 

 

424

 

 

 

620

 

 

 

1,657

 

Segment gross profit percentage

 

 

42.6

%

 

 

43.4

%

 

 

51.4

%

 

 

45.7

%

Reconciliation to loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

288

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

675

 

Acquisition and integrated costs

 

 

 

 

 

 

 

 

 

 

 

16

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

20

 

Fees and expenses related to repricing of Term Loan Facility

 

 

 

 

 

 

 

 

 

 

 

2

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

295

 

Goodwill and intangible asset impairment

 

 

 

 

 

 

 

 

 

 

 

1,902

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

(2

)

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

15

 

Loss from operations

 

 

 

 

 

 

 

 

 

 

 

(1,554

)

Interest income

 

 

 

 

 

 

 

 

 

 

 

(17

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

356

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

8

 

Other (income) expense, net

 

 

 

 

 

 

 

 

 

 

 

27

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(1,928

)

 

 

 

Year Ended December 31, 2022

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Product

 

$

1,791

 

 

$

842

 

 

$

486

 

 

$

3,119

 

Services

 

 

246

 

 

 

151

 

 

 

31

 

 

 

428

 

Revenues by segment

 

 

2,037

 

 

 

993

 

 

 

517

 

 

 

3,547

 

Total cost of revenues (exclusive of amortization shown separately below)(1)

 

 

1,121

 

 

 

537

 

 

 

325

 

 

 

1,983

 

Segment gross profit

 

 

916

 

 

 

456

 

 

 

192

 

 

 

1,564

 

Segment gross profit percentage

 

 

45.0

%

 

 

45.9

%

 

 

37.1

%

 

 

44.1

%

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

241

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

488

 

Acquisition and integrated costs

 

 

 

 

 

 

 

 

 

 

 

52

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

10

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

146

 

Gain on sale of long-lived assets

 

 

 

 

 

 

 

 

 

 

 

(7

)

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

17

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

617

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

(4

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

177

 

Other (income) expense, net

 

 

 

 

 

 

 

 

 

 

 

11

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

433

 

 

(1)
The significant expense category and amount aligns with the segment-level information that is regularly provided to the CODM.

The following table set forth capital expenditures by reportable segment:

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

VSD

 

$

36

 

 

$

26

 

 

$

97

 

PSD

 

 

36

 

 

 

29

 

 

 

39

 

MSD

 

 

53

 

 

 

32

 

 

 

28

 

Total capital expenditures

 

$

125

 

 

$

87

 

 

$

164

 

The following table sets forth depreciation and amortization by reportable segment:

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

VSD

 

$

44

 

 

$

43

 

 

$

40

 

PSD

 

 

50

 

 

 

60

 

 

 

72

 

MSD

 

 

254

 

 

 

294

 

 

 

104

 

Total depreciation and amortization

 

$

348

 

 

$

397

 

 

$

216

 

The following table sets forth segment assets by reportable segment:

 

Accounts
receivable, net

 

 

Inventories

 

 

Total

 

December 31, 2024

 

 

 

 

 

 

 

 

 

VSD

 

$

200

 

 

$

488

 

 

$

688

 

PSD

 

 

168

 

 

 

260

 

 

 

428

 

MSD

 

 

247

 

 

 

145

 

 

 

392

 

Total segment assets

 

$

615

 

 

$

893

 

 

$

1,508

 

 

 

 

Accounts
receivable, net

 

 

Inventories

 

 

Total

 

December 31, 2023

 

 

 

 

 

 

 

 

 

VSD

 

$

181

 

 

$

553

 

 

$

734

 

PSD

 

 

171

 

 

 

283

 

 

 

454

 

MSD

 

 

251

 

 

 

155

 

 

 

406

 

Total segment assets

 

$

603

 

 

$

991

 

 

$

1,594

 

 

 

 

Accounts
receivable, net

 

 

Inventories

 

 

Total

 

December 31, 2022

 

 

 

 

 

 

 

 

 

VSD

 

$

274

 

 

$

504

 

 

$

778

 

PSD

 

 

190

 

 

 

283

 

 

 

473

 

MSD

 

 

256

 

 

 

190

 

 

 

446

 

Total segment assets

 

$

720

 

 

$

977

 

 

$

1,697

 

 

The following tables reconciles total segment assets to total assets:

 

 

December 31,

 

 

 

2024

 

 

2023

 

Total segment assets

 

$

1,508

 

 

$

1,594

 

Cash and cash equivalents

 

 

714

 

 

 

875

 

Other current assets

 

 

252

 

 

 

227

 

Property, plant and equipment, net

 

 

771

 

 

 

784

 

Right-of-use assets, net

 

 

238

 

 

 

225

 

Goodwill and intangible assets, net

 

 

4,751

 

 

 

5,173

 

Other assets

 

 

356

 

 

 

240

 

Total assets

 

$

8,590

 

 

$

9,118

 

Goodwill associated with each of the Company’s reportable segments is as follows:

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill at December 31, 2023

 

 

335

 

 

 

1,031

 

 

 

3,021

 

 

 

4,387

 

Movement of OSP product line

 

 

24

 

 

 

(24

)

 

 

—

 

 

 

—

 

Foreign currency translation and measurement period adjustments

 

 

(1

)

 

 

(4

)

 

 

(70

)

 

 

(75

)

Gross goodwill at December 31, 2024

 

 

358

 

 

 

1,003

 

 

 

2,951

 

 

 

4,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated goodwill impairment at December 31, 2023

 

 

(141

)

 

 

(390

)

 

 

(1,302

)

 

 

(1,833

)

Impairment charge

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Accumulated goodwill impairment at December 31, 2024

 

 

(141

)

 

 

(390

)

 

 

(1,302

)

 

 

(1,833

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, net of accumulated impairment and foreign currency translation at December 31, 2024

 

$

217

 

 

$

613

 

 

$

1,649

 

 

$

2,479

 

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill at December 31, 2022

 

$

336

 

 

$

1,031

 

 

$

3,087

 

 

$

4,454

 

Foreign currency translation and measurement period adjustments

 

 

(1

)

 

 

—

 

 

 

(66

)

 

 

(67

)

Gross goodwill at December 31, 2023

 

 

335

 

 

 

1,031

 

 

 

3,021

 

 

 

4,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated goodwill impairment at December 31, 2022

 

 

(141

)

 

 

(5

)

 

 

—

 

 

 

(146

)

Impairment charge

 

 

—

 

 

 

(385

)

 

 

(1,302

)

 

 

(1,687

)

Accumulated goodwill impairment at December 31, 2023

 

 

(141

)

 

 

(390

)

 

 

(1,302

)

 

 

(1,833

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, net of accumulated impairment and foreign currency translation at December 31, 2023

 

$

194

 

 

$

641

 

 

$

1,719

 

 

$

2,554

 

Geographic Area

Information about the Company’s operations by geographic area is presented in the tables below. Starting in the second quarter of 2024, the Company changed its basis of reporting geographical net revenues from the location in which the sale originated to the shipped-to location of the end customer. Prior periods have been recast to reflect this change, which was

made to better align with how management reviews geographic net revenues. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated revenues.

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Net revenues:

 

 

 

 

 

 

 

 

 

United States

 

$

804

 

 

$

893

 

 

$

1,083

 

China

 

 

775

 

 

 

745

 

 

 

602

 

South Korea

 

 

358

 

 

 

359

 

 

 

445

 

Japan

 

 

250

 

 

 

280

 

 

 

263

 

Taiwan

 

 

234

 

 

 

248

 

 

 

231

 

Singapore

 

 

229

 

 

 

239

 

 

 

297

 

Other

 

 

936

 

 

 

858

 

 

 

626

 

 

$

3,586

 

 

$

3,622

 

 

$

3,547

 

Long-lived assets include property, plant and equipment, net, right-of-use assets, net and certain other assets.

 

 

December 31,

 

 

 

2024

 

 

2023

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

458

 

 

$

459

 

China

 

 

172

 

 

 

163

 

Germany

 

 

125

 

 

 

149

 

Other

 

 

349

 

 

 

326

 

 

$

1,104

 

 

$

1,097

 

The Company sells products and services to thousands of customers worldwide, in a wide range of end markets. Revenues from its top ten customers accounted for 32%, 30% and 42% of net revenues for 2024, 2023, and 2022, respectively.

For the years ended December 31, 2024 and 2023, no customer represented 10% or more of the Company’s net revenues. For the year ended December 31, 2022, the Company had one customer that represented 14% and one customer that represented 10% of net revenues.