Segment Data and Related Information

6 Months Ended

Mar. 31, 2012

Segment Data and Related Information [Abstract]

Segment Data and Related Information [Text Block]

Segment Data and Related Information

We have four operating divisions and two reporting segments.

• Fiber Optics: EMCORE Digital Fiber Optics Products and EMCORE Broadband Fiber Optics Products are aggregated as a separate reporting segment, Fiber Optics. Our Fiber Optics reporting segment provides optical components, subsystems, and systems for the high-speed telecommunication, cable television (CATV), and fiber-to-the-premise (FTTP) networks. Additionally, we offer products for video conversion and video transport, as well as specialty photonics technologies for defense and homeland security applications.

• Photovoltaics: EMCORE Photovoltaics and EMCORE Solar Power are aggregated as a separate reporting segment, Photovoltaics. Our Photovoltaic reporting segment provides products for both space power and terrestrial solar power applications. For space power applications, we offer high-efficiency multi-junction solar cells, covered interconnect cells (CICs), and complete satellite solar panels. For terrestrial solar power applications, we offer a broad portfolio of our multi-junction solar cells and components for use in solar concentrator systems.

We evaluate our reportable segments pursuant to ASC 280, Segment Reporting. The Company's Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources to segments based on their business prospects, competitive factors, net revenue, operating results and other non-GAAP financial ratios.

Revenue

The following tables set forth the revenue and percentage of total revenue attributable to each of our reporting segments.

Segment Revenue	For the Three Months Ended March 31,
(in thousands, expect percentages)	2012			2011
	Revenue		% of Revenue	Revenue		% of Revenue
Fiber Optics revenue	$	21,938	58.1%	$	30,032	63.6%
Photovoltaics revenue	15,842		41.9%	17,186		36.4%
Total revenue	$	37,780	100.0%	$	47,218	100.0%

Segment Revenue	For the Six Months Ended March 31,
(in thousands, expect percentages)	2012			2011
	Revenue		% of Revenue	Revenue		% of Revenue
Fiber Optics revenue	$	40,241	53.5%	$	61,484	61.9%
Photovoltaics revenue	34,990		46.5%	37,841		38.1%
Total revenue	$	75,231	100.0%	$	99,325	100.0%

The following tables sets forth consolidated revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address.

Geographic Revenue	For the Three Months Ended March 31,
(in thousands, expect percentages)	2012				2011
	Revenue		% of Revenue		Revenue		% of Revenue
United States	$	25,207	66.7	%	$	34,854	73.8	%
Asia	6,513		17.2	%	9,669		20.5	%
Europe	1,512		4.0	%	2,115		4.5	%
Other	4,548		12.1	%	580		1.2	%
Total revenue	$	37,780	100.0	%	$	47,218	100.0	%

Geographic Revenue	For the Six Months Ended March 31,
(in thousands, expect percentages)	2012				2011
	Revenue		% of Revenue		Revenue		% of Revenue
United States	$	47,573	63.2	%	$	69,931	70.4	%
Asia	11,785		15.7	%	23,898		24.1	%
Europe	3,673		4.9	%	4,606		4.6	%
Other	12,200		16.2	%	890		0.9	%
Total revenue	$	75,231	100.0	%	$	99,325	100.0	%

The increase in geographic revenue "Other" category in fiscal 2012 represents orders shipped to customers located in Israel and Russia. We do not expect sales to be significant to these geographic locations for the remaining half of fiscal 2012.

Thailand Flood

In October 2011, flood waters infiltrated the offices and manufacturing floorspace of our primary contract manufacturer's facility in Thailand and suspended all production. As a result, the manufacturing infrastructure that supported approximately 50% of our Fiber Optics segment revenue was destroyed. This has had a significant impact on our operations and our ability to meet customer demand for certain of our fiber optics products in the near term. Our Photovoltaics segment was not affected by the Thailand floods. See Footnote 9 - Flood-related Losses for additional disclosures related to the impact of the Thailand flood on our operations.

Pending Sale of Fiber Optics-related Assets

We entered into a Master Purchase Agreement with SEI pursuant to which we have agreed to sell certain assets and transfer certain inventory purchase obligations associated with our Fiber Optics segment for $17 million, subject to certain customary purchase adjustments. See Footnote 1 - Basis of Presentation for additional disclosures related to this asset sale.

Significant Customers

During the three and six months ended March 31, 2012, Loral Space & Communications, a customer associated with our Photovoltaics segment, represented 20% and 15%, respectively, of total consolidated revenue. For both the three and six months ended March 31, 2011, Loral Space & Communications represented 13% of total consolidated revenue.

Operating Income (Loss)

The following table sets forth operating income (loss) attributable to each of our reporting segments.

Statement of Operations Data (in thousands)	For the Three Months Ended March 31,						For the Six Months Ended March 31,
	2012			2011			2012			2011
Fiber Optics operating loss	$	(7,251	)	$	(5,106	)	$	(18,444	)	$	(9,696	)
Photovoltaics operating income (loss)	(1,633		)	912			(2,130		)	2,727
Total operating loss	$	(8,884	)	$	(4,194	)	$	(20,574	)	$	(6,969	)

Non-Cash Expense

The following tables sets forth our significant non-cash expenses attributable to each of our reporting segments.

Depreciation, Amortization, and Accretion Expense (in thousands)	For the Three Months Ended March 31,				For the Six Months Ended March 31,
	2012		2011		2012		2011
Fiber Optics segment	$	1,271	$	1,630	$	2,926	$	3,278
Photovoltaics segment	1,106		1,333		2,226		2,692
Total depreciation, amortization, and accretion expense	$	2,377	$	2,963	$	5,152	$	5,970

Stock-based Compensation Expense (in thousands)	For the Three Months Ended March 31,				For the Six Months Ended March 31,
	2012		2011		2012		2011
Fiber Optics segment	$	1,575	$	900	$	2,970	$	1,602
Photovoltaics segment	967		588		1,752		1,009
Total stock-based compensation expense	$	2,542	$	1,488	$	4,722	$	2,611

Long-lived Assets

Long-lived assets consist primarily of property, plant, and equipment and also goodwill and intangible assets.  The following table sets forth long-lived assets for each of our reporting segments.

(in thousands)	As of		As of
	March 31, 2012		September 30, 2011
Fiber Optics segment	$	22,187	$	26,483
Photovoltaics segment	44,158		45,546
Corporate division (unallocated)	1,032		1,007
Long-lived assets	$	67,377	$	73,036

As of March 31, 2012 and September 30, 2011, approximately 93% of our long-lived assets were located in the United States.