Segment Information

3 Months Ended

Mar. 31, 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”) 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 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 months ended March 31, 2012 and 2011, respectively, and goodwill and total assets as of March 31, 2012 and December 31, 2011 (in thousands):

	LED & Solar		Data Storage		Unallocated Corporate Amount			Total
Three months ended March 31, 2012
Net sales	$	95,574	$	44,335	$	—		$	139,909
Segment profit (loss)	$	17,486	$	8,953	$	(1,085	)	$	25,354
Interest, net	—		—		(203		)	(203		)
Amortization	863		352		—			1,215
Equity-based compensation	1,006		411		1,713			3,130
Restructuring	58		5		—			63
Income (loss) from continuing operations before income taxes	$	15,559	$	8,185	$	(2,595	)	$	21,149
Three months ended March 31, 2011
Net sales	$	214,698	$	39,978	$	—		$	254,676
Segment profit (loss)	$	80,977	$	12,231	$	(2,292	)	$	90,916
Interest, net	—		—		1,299			1,299
Amortization	487		363		58			908
Equity-based compensation	679		308		1,813			2,800
Loss on extinguishment of debt	—		—		304			304
Income (loss) from continuing operations before income taxes	$	79,811	$	11,560	$	(5,766	)	$	85,605

	LED & Solar		Data Storage		Unallocated Corporate Amount		Total
As of March 31, 2012
Goodwill	$	55,828	$	—	$	—	$	55,828
Total assets	$	288,835	$	73,450	$	582,067	$	944,352
As of December 31, 2011
Goodwill	$	55,828	$	—	$	—	$	55,828
Total assets	$	319,457	$	57,203	$	559,403	$	936,063

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