Segment Reporting and Geographic Information

9 Months Ended

Sep. 30, 2015

Segment Reporting and Geographic Information

Segment Reporting and Geographic Information

Note 9 - Segment Reporting and Geographic Information

Veeco operates and measures its results in one operating segment and therefore has one reportable segment: the design, development, manufacture, and support of thin film process equipment primarily sold to make electronic devices.

Veeco categorizes its sales into the following four markets:

Lighting, Display & Power Electronics (“Energy Conservation”)

Lighting refers to Light Emitting Diode (“LED”); semiconductor illumination sources used in various applications including backlights, general lighting, automotive running lights, and head lamps. Display refers to LED displays and Organic Light Emitting Diode (“OLED”) displays. Power Electronics refers to semiconductor devices such as rectifiers, inverters, and converters for the control and conversion of electric power.

Advanced Packaging, MEMS & RF (“Mobility”)

Advanced Packaging includes a portfolio of wafer-level assembly technologies that enable the miniaturization andperformance improvement of electronic products, such as smartphones, smartwatches, tablets, and laptops. Micro-Electro Mechanical Systems (“MEMS”) includes tiny mechanical devices such as sensors, switches, mirrors, and actuators embedded in semiconductor chips used in vehicles, smartphones, tablets, and games. Radio Frequency (“RF”) includes semiconductor devices that make use of radio waves (RF fields) for wireless broadcasting and/or communications.

Scientific & Industrial

Scientific refers to university research institutions, industry research institutions, industry consortiums, and government research agencies. Industrial refers to large-scale product manufacturing including optical coatings: thin layers of material deposited on a lens or mirror that alters how light reflects and transmits; photomask: an opaque plate that allows light to shine through in a defined pattern for use in photolithography; and front end semiconductor: early steps in the process of integrated circuit fabrication where the microchips are created but still remain on the silicon wafer.

Data Storage

The Data Storage market refers to the archiving of data in electromagnetic or other forms for use by a computer or device, including hard disk drives used in large capacity storage applications.

Revenue by market:

	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
	(in thousands)
Lighting, Display & Power Electronics	$	94,302	$	70,087	$	240,751	$	200,199
Advanced Packaging, MEMS & RF	13,541		872		40,545		3,507
Scientific & Industrial	14,897		10,118		46,493		32,685
Data Storage	18,004		12,264		42,705		42,913
Total Sales	$	140,744	$	93,341	$	370,494	$	279,304

Significant operations outside the United States include sales and service offices in the Asia-Pacific and Europe regions. For geographic reporting, revenue is attributed to the location of the customer facility.

Revenue by geography:

	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
	(in thousands)
United States	$	19,405	$	9,896	$	67,006	$	30,839
China	81,156		17,278		191,874		101,204
EMEA(1)	21,304		9,078		51,618		26,332
Rest of World	18,879		57,089		59,996		120,929
Total Sales	$	140,744	$	93,341	$	370,494	$	279,304

(1) EMEA consists of Europe, the Middle East, and Africa