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Business Segment, Geographic Area and Product Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segment, Geographic Are and Product Information
(15)
Business Segment, Geographic Area and Product Information

Reportable Segments and Products

The Company’s Chief Operating Decision Maker (the “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 allocate resources. Gross margin, among other measures, is utilized when making decisions about capital and personnel allocations across 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 printed circuit board (“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 set forth the details of gross profit by reportable segment and the reconciliation to income before income taxes:

 

 

Three Months Ended March 31, 2025

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Product

 

$

317

 

 

$

226

 

 

$

276

 

 

$

819

 

Services

 

 

69

 

 

 

37

 

 

 

11

 

 

 

117

 

Revenues by segment

 

 

386

 

 

 

263

 

 

 

287

 

 

 

936

 

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

 

 

211

 

 

 

147

 

 

 

131

 

 

 

489

 

Segment gross profit

 

 

175

 

 

 

116

 

 

 

156

 

 

 

447

 

Segment gross profit percentage

 

 

45.3

%

 

 

44.0

%

 

 

54.5

%

 

 

47.8

%

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

70

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

185

 

Restructuring and other

 

 

 

 

 

 

 

 

 

 

 

16

 

Fees and expenses related to amendments to the Term Loan Facility

 

 

 

 

 

 

 

 

 

 

 

2

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

60

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

3

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

111

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

(3

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

53

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

3

 

Other (income) expense, net

 

 

 

 

 

 

 

 

 

 

 

(1

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

59

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Product

 

$

274

 

 

$

214

 

 

$

266

 

 

$

754

 

Services

 

 

58

 

 

 

40

 

 

 

16

 

 

 

114

 

Revenues by segment

 

 

332

 

 

 

254

 

 

 

282

 

 

 

868

 

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

 

 

188

 

 

 

136

 

 

 

125

 

 

 

449

 

Segment gross profit

 

 

144

 

 

 

118

 

 

 

157

 

 

 

419

 

Segment gross profit percentage

 

 

43.5

%

 

 

46.4

%

 

 

55.6

%

 

 

48.3

%

Reconciliation to income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

70

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

170

 

Acquisition and integrated costs

 

 

 

 

 

 

 

 

 

 

 

1

 

Restructuring and other

 

 

 

 

 

 

 

 

 

 

 

3

 

Fees and expenses related to amendments to the Term Loan Facility

 

 

 

 

 

 

 

 

 

 

 

3

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

62

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

4

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

106

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

(6

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

87

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

9

 

Other (income) expense, net

 

 

 

 

 

 

 

 

 

 

 

(3

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

19

 

 

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

The following table sets forth capital expenditures by reportable segment:

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

VSD

 

$

8

 

 

$

5

 

PSD

 

 

2

 

 

 

8

 

MSD

 

 

8

 

 

 

5

 

Total capital expenditures

 

$

18

 

 

$

18

 

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

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

VSD

 

$

11

 

 

$

11

 

PSD

 

 

12

 

 

 

13

 

MSD

 

 

62

 

 

 

64

 

Total depreciation and amortization

 

$

85

 

 

$

88

 

The following tables set forth segment assets by reportable segment:

March 31, 2025

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

213

 

 

$

490

 

 

$

703

 

PSD

 

 

187

 

 

 

257

 

 

 

444

 

MSD

 

 

239

 

 

 

147

 

 

 

386

 

Total segment assets

 

$

639

 

 

$

894

 

 

$

1,533

 

 

 

December 31, 2024

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

200

 

 

$

488

 

 

$

688

 

PSD

 

 

168

 

 

 

260

 

 

 

428

 

MSD

 

 

247

 

 

 

145

 

 

 

392

 

Total segment assets

 

$

615

 

 

$

893

 

 

$

1,508

 

The following table reconciles total segment assets to total assets:

 

 

March 31, 2025

 

 

December 31, 2024

 

Total segment assets

 

$

1,533

 

 

$

1,508

 

Cash and cash equivalents

 

 

655

 

 

 

714

 

Other current assets

 

 

238

 

 

 

252

 

Property, plant and equipment, net

 

 

774

 

 

 

771

 

Right-of-use assets, net

 

 

239

 

 

 

238

 

Goodwill and intangible assets, net

 

 

4,734

 

 

 

4,751

 

Other assets

 

 

383

 

 

 

356

 

Total assets

 

$

8,556

 

 

$

8,590

 

Geographic Area

Information about the Company’s operations by geographic area is presented in the tables below. Net revenues from unaffiliated customers are based on the shipped-to location of the end customer. 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.

 

Three Months Ended March 31,

 

Net revenues:

 

2025

 

 

2024

 

United States

 

$

177

 

 

$

220

 

China

 

 

219

 

 

 

170

 

South Korea

 

 

103

 

 

 

88

 

Japan

 

 

68

 

 

 

57

 

Singapore

 

 

63

 

 

 

56

 

Taiwan

 

 

60

 

 

 

47

 

Other

 

 

246

 

 

 

230

 

 

$

936

 

 

$

868