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Segment Information | 9 Months Ended
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Sep. 30, 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 operating segments 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”) operating segments 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 operating segments 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. As of September 30, 2014, we are continuing the consolidation of our Ft. Collins, Colorado facility into our Plainview, New York facility and have begun consolidation of our Camarillo, California facility into the Plainview, New York facility. We evaluate the performance of our reportable segments based on income (loss) from operations before interest, income taxes, amortization and other 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. Other 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. Beginning in the third quarter of 2014, we began evaluating our reportable segments using segment profit (loss) before depreciation. Prior period segment profit (loss) reported below reflect this change for comparability. The following table presents 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 September 30, 2014 and 2013, respectively (in thousands):
|  | LED & Solar |  | Data Storage |  | Unallocated |  | Total |
Three months ended September 30, 2014 |  |  |  |  |  |  |  |  |
Net sales |  | $ | 76,850 |  | $ | 16,491 |  | $ | — |  | $ | 93,341 |
Segment profit (loss) |  | $ | 3,767 |  | $ | (1,417 | ) | $ | (4,118 | ) | $ | (1,768 | )
Interest income (expense), net |  | — |  | — |  | 305 |  | 305 |
Depreciation |  | (2,267 | ) | (417 | ) | (216 | ) | (2,900 | )
Amortization |  | (2,825 | ) | (324 | ) | — |  | (3,149 | )
Equity-based compensation |  | (2,083 | ) | (647 | ) | (1,760 | ) | (4,490 | )
Restructuring |  | (557 | ) | (1,403 | ) | (357 | ) | (2,317 | )
Asset impairment |  | (2,799 | ) | (65 | ) | — |  | (2,864 | )
Income (loss) before income taxes |  | $ | (6,764 | ) | $ | (4,273 | ) | $ | (6,146 | ) | $ | (17,183 | )
Three months ended September 30, 2013 |  |  |  |  |  |  |  |  |
Net sales |  | $ | 75,001 |  | $ | 24,323 |  | $ | — |  | $ | 99,324 |
Segment profit (loss) |  | $ | 801 |  | $ | 2,570 |  | $ | (5,210 | ) | $ | (1,839 | )
Interest income (expense), net |  | — |  | — |  | 192 |  | 192 |
Depreciation |  | (2,524 | ) | (435 | ) | (281 | ) | (3,240 | )
Amortization |  | (531 | ) | (324 | ) | — |  | (855 | )
Equity-based compensation |  | (1,016 | ) | (439 | ) | (1,308 | ) | (2,763 | )
Restructuring |  | (793 | ) | (447 | ) | — |  | (1,240 | )
Income (loss) before income taxes |  | $ | (4,063 | ) | $ | 925 |  | $ | (6,607 | ) | $ | (9,745 | )
The following table presents certain data pertaining to our reportable segments and a reconciliation of segment profit (loss) to income (loss) before income taxes for the nine months ended September 30, 2014 and 2013, respectively (in thousands):
|  | LED & Solar |  | Data Storage |  | Unallocated |  | Total |
Nine months ended September 30, 2014 |  |  |  |  |  |  |  |  |
Net sales |  | $ | 224,759 |  | $ | 54,545 |  | $ | — |  | $ | 279,304 |
Segment profit (loss) |  | $ | 8,768 |  | $ | (1,634 | ) | $ | (12,808 | ) | $ | (5,674 | )
Interest income (expense), net |  | — |  | — |  | 541 |  | 541 |
Depreciation |  | (6,760 | ) | (1,191 | ) | (747 | ) | (8,698 | )
Amortization |  | (7,980 | ) | (971 | ) | — |  | (8,951 | )
Equity-based compensation |  | (6,595 | ) | (2,029 | ) | (5,679 | ) | (14,303 | )
Restructuring |  | (794 | ) | (2,359 | ) | (357 | ) | (3,510 | )
Changes in contingent consideration |  | 29,368 |  | — |  | — |  | 29,368 |
Asset impairment |  | (2,799 | ) | (65 | ) | — |  | (2,864 | )
Income (loss) before income taxes |  | $ | 13,208 |  | $ | (8,249 | ) | $ | (19,050 | ) | $ | (14,091 | )
Nine months ended September 30, 2013 |  |  |  |  |  |  |  |  |
Net sales |  | $ | 193,241 |  | $ | 65,299 |  | $ | — |  | $ | 258,540 |
Segment profit (loss) |  | $ | (2,327 | ) | $ | 3,531 |  | $ | (14,671 | ) | $ | (13,467 | )
Interest income (expense), net |  | — |  | — |  | 620 |  | 620 |
Depreciation |  | (7,494 | ) | (1,142 | ) | (878 | ) | (9,514 | )
Amortization |  | (1,595 | ) | (971 | ) | — |  | (2,566 | )
Equity-based compensation |  | (3,042 | ) | (1,057 | ) | (4,956 | ) | (9,055 | )
Restructuring |  | (1,216 | ) | (497 | ) | (58 | ) | (1,771 | )
Income (loss) before income taxes |  | $ | (15,674 | ) | $ | (136 | ) | $ | (19,943 | ) | $ | (35,753 | )
The following table presents goodwill and total assets as of September 30, 2014 and December 31, 2013 (in thousands):
|  | LED & Solar |  | Data Storage |  | Unallocated |  | Total |
As of September 30, 2014 |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 91,521 |  | $ | — |  | $ | — |  | $ | 91,521 |
Total assets |  | $ | 388,745 |  | $ | 33,936 |  | $ | 533,717 |  | $ | 956,398 |
As of December 31, 2013 |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 91,348 |  | $ | — |  | $ | — |  | $ | 91,348 |
Total assets |  | $ | 359,464 |  | $ | 37,910 |  | $ | 550,595 |  | $ | 947,969 |
As of September 30, 2014 and December 31, 2013 unallocated assets were comprised principally of cash and cash equivalents, restricted cash and short-term investments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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