Segment Reporting and Geographic Information

6 Months Ended

Jun. 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 and performance 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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(in thousands)
Lighting, Display & Power Electronics	$	82,122	$	66,221	$	146,450	$	130,112
Advanced Packaging, MEMS & RF	13,840		1,836		27,005		2,635
Scientific & Industrial	17,960		14,082		31,595		22,567
Data Storage	17,488		12,983		24,701		30,649
Total Sales	$	131,410	$	95,122	$	229,751	$	185,963

Significant operations outside the United States include sales and service offices in the Asia-Pacific and Europe regions. For geographic reporting, revenues are attributed to the location in which the customer facility is located as follows:

Revenue by geography:

	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(in thousands)
United States	$	19,632	$	13,466	$	47,601	$	20,943
China	66,437		51,088		110,718		83,926
EMEA(1)	21,990		6,908		30,314		17,254
Rest of World	23,351		23,660		41,118		63,840
Total Sales	$	131,410	$	95,122	$	229,751	$	185,963

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