Industry Segments

9 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Industry Segments

8. Industry Segments

Our reportable segments are business units that offer different products and are managed separately because each business requires different technology and marketing strategies. As discussed in Note 2, in June 2014, we sold substantially all the assets of Cohu Electronics, which comprised our video camera segment and have presented financial information for this segment as discontinued operations. Subsequent to this transaction Cohu’s remaining reportable segments are semiconductor and microwave communications equipment.

We allocate resources and evaluate the performance of segments based on profit or loss from operations, excluding interest, corporate expenses and unusual gains or losses. Intersegment sales were not significant for any period.

Financial information by industry segment is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 27,			September 28,			September 27,			September 28,
	2014			2013			2014			2013
Net sales by segment:
Semiconductor equipment	$	91,573		$	52,403		$	226,042		$	160,326
Microwave communications equipment		2,868			3,574			11,113			10,112
Consolidated net sales for reportable segments	$	94,441		$	55,977		$	237,155		$	170,438
Segment profit (loss):
Semiconductor equipment	$	13,928		$	(9,391	)	$	17,583		$	(18,857	)
Microwave communications equipment		(2,536	)		(1,511	)		(4,873	)		(6,524	)
Profit (loss) for reportable segments		11,392			(10,902	)		12,710			(25,381	)
Other unallocated amounts:
Corporate expenses		(1,984	)		(1,516	)		(5,681	)		(5,069	)
Interest and other, net		6			16			25			42
Income (loss) from continuing operations before taxes	$	9,414		$	(12,402	)	$	7,054		$	(30,408	)

A small number of customers of our semiconductor equipment segment historically have been responsible for a significant portion of our consolidated net sales. Significant customer concentration information is as follows (in thousands):

	Three Months Ended		Nine Months Ended
	September 27,	September 28,	September 27,	September 28,
	2014	2013	2014	2013
Customers individually accounting for more than 10% of consolidated net sales	two	two	two	one
Percentage of consolidated net sales	25%	28%	26%	19%