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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information  
Segment Information

Note 5—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”), wireless devices and solar industries, as well as to scientific research customers. This segment has manufacturing, product development and marketing sites in Somerset, New Jersey, Poughkeepsie, New York and St. Paul, Minnesota. 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 charges, 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 six months ended June 30, 2012 and 2011, respectively, and goodwill and total assets as of June 30, 2012 and December 31, 2011 (in thousands):

 

 

 

LED & Solar

 

Data Storage

 

Unallocated 
Corporate 
Amount

 

Total

 

Three months ended June 30, 2012

 

 

 

 

 

 

 

 

 

Net sales

 

$

86,778

 

$

49,769

 

$

—

 

$

136,547

 

Segment profit (loss)

 

$

9,587

 

$

12,136

 

$

(1,404

)

$

20,319

 

Interest, net

 

—

 

—

 

(329

)

(329

)

Amortization

 

861

 

324

 

—

 

1,185

 

Equity-based compensation

 

1,096

 

440

 

2,478

 

4,014

 

Income (loss) from continuing operations before income taxes

 

$

7,630

 

$

11,372

 

$

(3,553

)

$

15,449

 

Three months ended June 30, 2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

219,135

 

$

45,680

 

$

—

 

$

264,815

 

Segment profit (loss)

 

$

79,052

 

$

13,050

 

$

(4,081

)

$

88,021

 

Interest, net

 

—

 

—

 

86

 

86

 

Amortization

 

953

 

356

 

25

 

1,334

 

Equity-based compensation

 

892

 

352

 

2,473

 

3,717

 

Loss on extinguishment of debt

 

—

 

—

 

3,045

 

3,045

 

Income (loss) from continuing operations before income taxes

 

$

77,207

 

$

12,342

 

$

(9,710

)

$

79,839

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2012

 

 

 

 

 

 

 

 

 

Net sales

 

$

182,352

 

$

94,104

 

$

—

 

$

276,456

 

Segment profit (loss)

 

$

27,073

 

$

21,089

 

$

(2,489

)

$

45,673

 

Interest, net

 

—

 

—

 

(532

)

(532

)

Amortization

 

1,724

 

676

 

—

 

2,400

 

Equity-based compensation

 

2,102

 

851

 

4,191

 

7,144

 

Restructuring

 

58

 

5

 

—

 

63

 

Income (loss) from continuing operations before income taxes

 

$

23,189

 

$

19,557

 

$

(6,148

)

$

36,598

 

Six months ended June 30, 2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

433,833

 

$

85,658

 

$

—

 

$

519,491

 

Segment profit (loss)

 

$

160,029

 

$

25,281

 

$

(6,373

)

$

178,937

 

Interest, net

 

—

 

—

 

1,385

 

1,385

 

Amortization

 

1,440

 

719

 

83

 

2,242

 

Equity-based compensation

 

1,571

 

660

 

4,286

 

6,517

 

Loss on extinguishment of debt

 

—

 

—

 

3,349

 

3,349

 

Income (loss) from continuing operations before income taxes

 

$

157,018

 

$

23,902

 

$

(15,476

)

$

165,444

 

 

 

 

LED & Solar

 

Data Storage

 

Unallocated 
Corporate 
Amount

 

Total

 

As of June 30, 2012

 

 

 

 

 

 

 

 

 

Goodwill

 

$

55,828

 

$

—

 

$

—

 

$

55,828

 

Total assets

 

$

285,219

 

$

68,660

 

$

596,096

 

$

949,975

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2011

 

 

 

 

 

 

 

 

 

Goodwill

 

$

55,828

 

$

—

 

$

—

 

$

55,828

 

Total assets

 

$

319,457

 

$

57,203

 

$

559,403

 

$

936,063

 

 

As of June 30, 2012 and December 31, 2011 corporate total assets were comprised principally of cash and cash equivalents and short-term investments.