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Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information  
Segment Information

Note 5—Segment Information

 

We have five identified operating segments that we aggregate into two reportable segments: the VIBE and Mechanical reporting units which are reported in our Data Storage segment; and the metal organic chemical vapor deposition (“MOCVD”), molecular beam epitaxy (“MBE”) and atomic layer deposition (“ALD”) reporting units are reported in our LED & Solar segment. We manage the business, review operating results and assess performance, as well as allocate resources, based upon our reporting units that reflect the market focus of each business. The LED & Solar segment consists of MOCVD systems, MBE systems, thermal deposition sources, ALD technology and other types of deposition systems. These systems are primarily sold to customers in the LED, OLED and solar industries, as well as to scientific research customers. This segment has product development and marketing sites in Somerset, New Jersey, Poughkeepsie, New York, St. Paul, Minnesota, Fremont, California, and Korea. 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 product development and marketing sites in Plainview, New York, Ft. Collins, Colorado and Camarillo, California.

 

We evaluate the performance of our reportable segments based on income (loss) from 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 expenses, asset impairment charges, equity-based compensation expense and other non-recurring items. 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 segments and a reconciliation of segment profit (loss) to income (loss) before income taxes for the three months ended March 31, 2014 and 2013, respectively, and goodwill and total assets as of March 31, 2014 and December 31, 2013 (in thousands):

 

 

 

LED & Solar

 

Data Storage

 

Unallocated

 

Total

 

Three months ended March 31, 2014

 

 

 

 

 

 

 

 

 

Net sales

 

$

70,755

 

$

20,086

 

$

—

 

$

90,841

 

Segment profit (loss)

 

$

2,124

 

$

(648

)

$

(4,200

)

$

(2,724

)

Interest income (expense), net

 

—

 

—

 

164

 

164

 

Amortization

 

(2,579

)

(324

)

—

 

(2,903

)

Equity-based compensation

 

(2,173

)

(699

)

(1,850

)

(4,722

)

Restructuring

 

(164

)

(228

)

—

 

(392

)

Changes in contingent consideration

 

29,368

 

—

 

—

 

29,368

 

Income (loss) before income taxes

 

$

26,576

 

$

(1,899

)

$

(5,886

)

$

18,791

 

Three months ended March 31, 2013

 

 

 

 

 

 

 

 

 

Net sales

 

$

42,307

 

$

19,474

 

$

—

 

$

61,781

 

Segment profit (loss)

 

$

(11,222

)

$

375

 

$

(4,811

)

$

(15,658

)

Interest income (expense), net

 

—

 

—

 

192

 

192

 

Amortization

 

(532

)

(324

)

—

 

(856

)

Equity-based compensation

 

(710

)

(130

)

(1,739

)

(2,579

)

Restructuring

 

(423

)

(50

)

(58

)

(531

)

Income (loss) before income taxes

 

$

(12,887

)

$

(129

)

$

(6,416

)

$

(19,432

)

 

As of March 31, 2014

 

LED & Solar

 

Data Storage

 

Unallocated

 

Total

 

Goodwill

 

$

91,348

 

$

—

 

$

—

 

$

91,348

 

Total assets

 

$

373,022

 

$

43,874

 

$

537,661

 

$

954,557

 

 

As of December 31, 2013

 

 

 

 

 

 

 

 

 

Goodwill

 

$

91,348

 

$

—

 

$

—

 

$

91,348

 

Total assets

 

$

359,464

 

$

37,910

 

$

550,595

 

$

947,969

 

 

As of March 31, 2014 and December 31, 2013 unallocated assets were comprised principally of cash and cash equivalents, restricted cash and short-term investments.