SEGMENT INFORMATION

Reportable segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company's Chief Executive Officer is the Company's chief operating decision maker. The chief operating decision-maker does not review discrete asset information.

In the fourth quarter of fiscal 2017, we reorganized our reporting structure into two reportable segments consisting of: (i) Capital Equipment; and (ii) APS. As a result of this re-alignment, the Company has aggregated twelve operating segments as of June 30, 2018, with six operating segments within the Capital Equipment reportable segment and six operating segments in the APS reportable segment. Subsequently, we have recasted financial results for the three and nine months ended July 1, 2017 based on the revised segment structure. The change in the segments was a result of changes to our organizational structure initiated during the fourth quarter of fiscal 2017 to streamline business operations to improve profitability and competitiveness and reflects a change in the manner in which our chief operating decision maker reviews information to assess our performance and make decisions about resource allocation. As part of these actions, we transitioned to a new internal management structure whereby the operating management responsible for tools used to assemble semiconductor devices, including integrated circuits (“ICs”), high and low powered discrete devices, light-emitting diodes (“LEDs”) and power modules, services, spares, maintenance, repair and upgrading operating segments was brought under common leadership in the APS segment. The restructuring actions were completed in fiscal year 2017. As a result of the reorganization, the Capital Equipment segment is comprised of the manufacturing and selling of ball bonders, wafer level bonders, wedge bonders, advanced packaging and electronic assembly solutions to semiconductor device manufacturers, IDMs, OSATs, other electronics manufacturers and automotive electronics suppliers.

The following table reflects operating information by segment for the three and nine months ended June 30, 2018 and July 1, 2017:



	Three months ended					Nine months ended
(in thousands)	June 30, 2018		July 1, 2017 As Restated			June 30, 2018		July 1, 2017 As Restated
Net revenue:
Capital Equipment	$	229,462	$	202,240		$	578,197	$	477,957
APS	39,372		41,657			126,100		115,192
Net revenue	268,834		243,897			704,297		593,149
Income from operations:
Capital Equipment	57,771		30,982			116,615		73,836
APS	6,692		(15,310		)	25,443		(2,602		)
Income from operations	$	64,463	$	15,672		$	142,058	$	71,234

The following tables reflect capital expenditures, depreciation expense and amortization expense for the three and nine months ended June 30, 2018 and July 1, 2017.



	Three months ended				Nine months ended
(in thousands)	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Capital expenditures:
Capital Equipment	$	999	$	1,423	$	4,878	$	12,907
APS	3,072		2,380		11,603		9,002
	$	4,071	$	3,803	$	16,481	$	21,909



	Three months ended				Nine months ended
(in thousands)	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Depreciation expense:
Capital Equipment	$	1,926	$	1,599	$	5,601	$	4,660
APS	1,063		843		2,635		2,513
	$	2,989	$	2,442	$	8,236	$	7,173

Amortization expense:
Capital Equipment	$	1,053	$	594	$	3,188	$	1,782
APS	909		927		2,739		2,784
	$	1,962	$	1,521	$	5,927	$	4,566