Segment Data and Related Information

9 Months Ended

Jun. 30, 2012

Segment Data and Related Information [Abstract]

Segment Data and Related Information [Text Block]

Segment Data and Related Information

We have four operating divisions within the following 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 high-speed telecommunications, cable television (CATV), and fiber-to-the-premise (FTTP) networks, as well as products for satellite communications, video transport, and 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 Photovoltaics reporting segment provides products for both space and terrestrial solar power applications. For space solar 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 concentrator photovoltaics (CPV) multi-junction solar cells and components, as well as commercial rooftop 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 revenue attributable to each of our reporting segments and by geographic region with revenue assigned to geographic regions based on our customers’ billing address.

Segment Revenue (in thousands)	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
Fiber Optics revenue	$	25,827	$	33,253	$	66,068	$	94,737
Photovoltaics revenue	15,235		16,227		50,225		54,068
Total revenue	$	41,062	$	49,480	$	116,293	$	148,805

Revenue by Geographic Region (in thousands)	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
United States	$	30,249	$	35,318	$	79,466	$	105,099
Asia	7,413		10,389		17,898		27,326
Europe	1,333		2,558		4,877		7,006
Other (*)	2,067		1,215		14,052		9,374
Total revenue	$	41,062	$	49,480	$	116,293	$	148,805

(*) The fiscal 2012 year-to-date increase in the geographic revenue "Other" category represents orders shipped to customers located in Israel and Russia. We do not expect sales to be significant to these geographic locations in future periods.

Impact from Thailand Flood: In October 2011, we announced that flood waters had severely impacted the inventory and production operations of our primary contract manufacturer in Thailand. The impacted areas included certain product lines for the Telecom and Cable Television (CATV) market segments. 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 Note 9 - Flood-related Losses for additional disclosures related to the impact of the Thailand flood on our operations.

Sale of Fiber Optics-related Assets: On May 7, 2012, we sold certain assets and transfered certain inventory purchase obligations associated with our Fiber Optics segment to SEI. See Note 1 - Basis of Presentation for additional disclosures related to this asset sale.

Significant Customers: During the three and nine months ended June 30, 2012, Loral Space & Communications, a customer associated with our Photovoltaics segment, represented 16% and 15%, respectively, of our total consolidated revenue. For the three months ended June 30, 2011, Cisco Systems, Inc., a customer associated with our Fiber Optics segment, represented 10% of our total consolidated revenue. For the nine months ended June 30, 2011, Loral Space & Communications represented 12% of our total consolidated revenue.

Operating Loss: The following table sets forth operating loss attributable to each of our reporting segments.

Statement of Operations Data (in thousands)	For the Three Months Ended June 30,						For the Nine Months Ended June 30,
	2012			2011			2012			2011
Fiber Optics operating loss	$	(3,840	)	$	(7,554	)	$	(22,284	)	$	(17,250	)
Photovoltaics operating loss	(4,918		)	(3,647		)	(7,048		)	(920		)
Total operating loss	$	(8,758	)	$	(11,201	)	$	(29,332	)	$	(18,170	)

Non-Cash Expenses: 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 June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
Fiber Optics segment	$	993	$	1,644	$	3,919	$	4,922
Photovoltaics segment	973		1,289		3,199		3,981
Total depreciation, amortization, and accretion expense	$	1,966	$	2,933	$	7,118	$	8,903

Stock-based Compensation Expense (in thousands)	For the Three Months Ended June 30,				For the Nine Months Ended June 30,
	2012		2011		2012		2011
Fiber Optics segment	$	843	$	1,876	$	3,813	$	3,478
Photovoltaics segment	432		1,085		2,184		2,094
Total stock-based compensation expense	$	1,275	$	2,961	$	5,997	$	5,572

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 and our unallocated Corporate division.

(in thousands)	As of		As of
	June 30, 2012		September 30, 2011
Fiber Optics segment	$	23,267	$	26,483
Photovoltaics segment	40,874		45,546
Unallocated Corporate division	6,911		1,007
Long-lived assets	$	71,052	$	73,036

During the three months ended June 30, 2012, we reclassified building and improvements associated with our Fiber Optics segment that was not sold as part of the asset sale to SEI to our unallocated Corporate division.

As of June 30, 2012 and September 30, 2011, approximately 92% and 93%. respectively, of our long-lived assets were located in the United States.