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Segment Information
9 Months Ended
Sep. 30, 2011
Segment Information 
Segment Information

Note 6—Segment Information

 

We manage the business, review operating results and assess performance, as well as allocate resources, based upon two separate reporting segments that reflect the market focus of each business. The Light Emitting Diode (“LED”) & Solar segment consists of metal organic chemical vapor deposition (“MOCVD”) systems, molecular beam epitaxy (“MBE”) systems and thermal deposition sources. These systems are primarily sold to customers in the high-brightness LED (“HB LED”) and solar industries, as well as to scientific research customers. This segment has manufacturing, product development and marketing sites in Somerset, New Jersey and St. Paul, Minnesota. By the end of the third quarter, we discontinued our CIGS solar systems business located in Tewksbury, Massachusetts and Clifton Park, New York (see Note 3). The Data Storage segment consists of the ion beam etch, ion beam deposition, diamond-like carbon, physical vapor deposition and dicing and slicing products sold primarily to customers in the data storage industry. This segment has manufacturing, product development and marketing sites in Plainview, New York, Camarillo, California and Ft. Collins, Colorado.

 

We evaluate the performance of our reportable segments based on income (loss) from continuing operations before interest, income taxes, amortization and certain items (“Segment profit (loss)”), which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management believes Segment profit (loss) reports baseline performance and thus provides useful information. Certain items include restructuring credits, equity-based compensation expense and loss on extinguishment of debt. The accounting policies of the reportable segments are the same as those described in the summary of critical accounting policies.

 

The following tables present certain data pertaining to our reportable product segments and a reconciliation of segment profit (loss) to income (loss) from continuing operations before income taxes for the three and nine months ended September 30, 2011 and 2010, respectively, and goodwill and total assets as of September 30, 2011 and December 31, 2010 (in thousands):

 

 

 

LED & Solar

 

Data Storage

 

Unallocated
Corporate

 

Total

 

Three months ended September 30, 2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

233,865

 

$

34,094

 

$

—

 

$

267,959

 

Segment profit (loss)

 

$

72,815

 

$

7,877

 

$

(2,581

)

$

78,111

 

Interest, net

 

—

 

—

 

(244

)

(244

)

Amortization

 

924

 

353

 

—

 

1,277

 

Equity-based compensation

 

992

 

339

 

1,620

 

2,951

 

Income (loss) from continuing operations before income taxes

 

$

70,899

 

$

7,185

 

$

(3,957

)

$

74,127

 

Three months ended September 30, 2010

 

 

 

 

 

 

 

 

 

Net sales

 

$

242,613

 

$

34,481

 

$

—

 

$

277,094

 

Segment profit (loss)

 

$

97,904

 

$

9,211

 

$

(5,662

)

$

101,453

 

Interest, net

 

—

 

—

 

1,637

 

1,637

 

Amortization

 

487

 

383

 

58

 

928

 

Equity-based compensation

 

324

 

258

 

1,774

 

2,356

 

Income (loss) from continuing operations before income taxes

 

$

97,093

 

$

8,570

 

$

(9,131

)

$

96,532

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

667,697

 

$

119,753

 

$

—

 

$

787,450

 

Segment profit (loss)

 

$

232,848

 

$

33,158

 

$

(8,954

)

$

257,052

 

Interest, net

 

—

 

—

 

1,141

 

1,141

 

Amortization

 

2,364

 

1,072

 

83

 

3,519

 

Equity-based compensation

 

2,567

 

999

 

5,906

 

9,472

 

Loss on extinguishment of debt

 

—

 

—

 

3,349

 

3,349

 

Income (loss) from continuing operations before income taxes

 

$

227,917

 

$

31,087

 

$

(19,433

)

$

239,571

 

Nine months ended September 30, 2010

 

 

 

 

 

 

 

 

 

Net sales

 

$

537,662

 

$

93,468

 

$

—

 

$

631,130

 

Segment profit (loss)

 

$

192,670

 

$

21,382

 

$

(12,159

)

$

201,893

 

Interest, net

 

—

 

—

 

5,182

 

5,182

 

Amortization

 

1,461

 

1,149

 

175

 

2,785

 

Equity-based compensation

 

939

 

781

 

4,502

 

6,222

 

Restructuring

 

—

 

(179

)

—

 

(179

)

Income (loss) from continuing operations before income taxes

 

$

190,270

 

$

19,631

 

$

(22,018

)

$

187,883

 

 

 

 

LED & Solar

 

Data Storage

 

Unallocated
Corporate

 

Total

 

As of September 30, 2011

 

 

 

 

 

 

 

 

 

Goodwill

 

$

56,271

 

$

—

 

$

—

 

$

56,271

 

Total assets

 

$

349,498

 

$

58,089

 

$

526,636

 

$

934,223

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2010

 

 

 

 

 

 

 

 

 

Goodwill

 

$

52,003

 

$

—

 

$

—

 

$

52,003

 

Total assets

 

$

323,096

 

$

61,691

 

$

763,247

 

$

1,148,034

 

 

As of September 30, 2011 and December 31, 2010 unallocated corporate total assets were comprised principally of cash and cash equivalents, short-term investments and restricted cash.