Segment Information

6 Months Ended

Dec. 25, 2011

Segment Information [Abstract]

Segment Information

12. Segment Information

The Company reports in six segments which correspond to the way the Company manages its business and interacts with customers. These reportable segments, which correspond to operating segments include:

Power Management Devices (“PMD”) - The PMD segment targets power supply, data processing, and industrial and commercial battery-powered system applications with the Company’s Trench HEXFET®MOSFETs, Discrete HEXFET®MOSFETs, Dual HEXFET®MOSFETs, FETKY®s, and DirectFET®s products.

Energy Saving Products (“ESP”) -The ESP segment targets solutions in motor control appliances, industrial automation, lighting and display, audio and video with the Company’s HVICs and IGBT platforms, digital control ICs and IRAM integrated power modules.  These products provide multiple technologies to deliver completely integrated design platforms specific to these customers.

Automotive Products (“AP”) - The AP segment products are focused solely on automotive customers and applications that require a high level of reliability, quality and performance and consist of the Company’s automotive qualified HVICs, intelligent power switch ICs, power MOSFETs including DirectFET® and IGBTs.  The Company’s automotive product portfolio provides high performance and energy saving solutions for a broad variety of automotive systems, ranging from typical 12V power net applications up to 1200V hybrid electric vehicle power management solutions.

Enterprise Power (“EP”) – The EP segment’s primary applications include servers, storage, routers, switches, infrastructure equipment, notebooks, graphic cards, and gaming consoles.  The Company offers a broad portfolio of power management system products that deliver benchmark power density, efficiency and performance. These products include DirectFET® discrete products, digital controllers, power monitoring products, XPhase®, SupIRBuckTM and iPOWIR® voltage regulators, Low voltage ICs, and PowIRstagesTM.

HiRel - The HiRel segment includes the Company’s RAD-Hard discretes, RAD-Hard ICs, power management modules and DC-DC converters as well as other high-reliability power components that address power management requirements in mission critical applications including satellites and space exploration vehicles, military hardware and other high- reliability applications such as commercial aircraft, undersea telecommunications, and oil drilling in heavy industry and products used in biomedical applications.  HiRel’s strategy is to apply multiple technologies to deliver highly efficient power delivery in applications that operate in naturally harsh environments like space and undersea as well as applications that require a high level of reliability to address issues of safety, cost of failure or difficulty in replacement, like medical applications.

Intellectual Property (“IP”) - The IP segment includes revenues from the sale of the Company’s technologies and manufacturing process know-how, in addition to the operating results of the Company’s patent licensing and settlements of claims brought against third parties.  With the expiration of the Company’s broadest MOSFET patents, most of its IP segment revenues ceased during the fourth quarter of fiscal year 2008; however, the Company continues, from time to time, to enter into opportunistic licensing arrangements that it believes are consistent with its business strategy.

The Company does not allocate assets, sales and marketing, information systems, finance and administrative costs and asset impairment, restructuring and other charges to the operating segments, as these are not meaningful statistics to the CEO in making resource allocation decisions or in evaluating performance of the operating segments.

Because operating segments are generally defined by the products they design and sell, they do not make sales to each other.  The Company does not directly allocate assets to its operating segments, nor does the CEO evaluate operating segments using discrete asset information.  However, depreciation and amortization related to the manufacturing of goods is included in gross profit for the segments as part of manufacturing overhead.  Due to the Company’s methodology for cost build up at the product level, it is impractical to determine the amount of depreciation and amortization included in each segment’s gross profit.

The Company’s “customer segments” as referred to herein includes its PMD, ESP, AP, EP and HiRel reporting segments.

For the three and six months ended December 25, 2011 and December 26, 2010, revenues and gross margin by reportable segments were as follows (in thousands, except percentages):

	Three Months Ended December 25, 2011									Three Months Ended December 26, 2010
Business Segment	Revenues			Percentage of Total			Gross Margin			Revenues		Percentage of Total			Gross Margin
Power Management Devices	$	72,490			31.5	%		29.3	%	$	112,550		39.9	%		37.1	%
Energy-Saving Products		58,938			25.6			36.6			63,056		22.4			47.3
Automotive Products		24,647			10.7			17.9			25,514		9.1			32.5
Enterprise Power		30,530			13.3			36.1			31,600		11.2			50.5
HiRel		44,410			19.3			54.2			47,066		16.7			49.3
Customer segments total		231,015			100.4			35.6			279,786		99.3			42.6
Intellectual Property		(937	)		(0.4	)		(100.0	)		1,958		0.7			100.0
Consolidated total	$	230,078			100.0	%		35.4	%	$	281,744		100.0	%		43.0	%

	Six Months Ended December 25, 2011								Six Months Ended December 26, 2010
Business Segment	Revenues		Percentage of Total			Gross Margin			Revenues		Percentage of Total			Gross Margin
Power Management Devices	$	183,696		34.5	%		29.4	%	$	228,074		40.5	%		33.3	%
Energy-Saving Products		134,995		25.3			39.3			123,072		21.9			44.9
Automotive Products		53,547		10.0			25.2			49,434		8.8			32.2
Enterprise Power		66,496		12.5			38.4			66,829		11.9			48.8
HiRel		93,253		17.5			52.9			91,263		16.2			50.6
Customer segments total		531,987		99.8			36.7			558,672		99.3			40.4
Intellectual Property		832		0.2			100.0			3,939		0.7			100.0
Consolidated total	$	532,819		100.0	%		36.8	%	$	562,611		100.0	%		40.9	%