Segment Data and Related Information

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Data and Related Information

Segment Data and Related Information

We have three 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 is 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 power applications, we offer high-efficiency GaAs solar cells for concentrating photovoltaic (CPV) power 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	For the Fiscal Years Ended September 30,
(in thousands)	2013		2012		2011
Fiber Optics revenue	$	96,977	$	96,153	$	125,659
Photovoltaics revenue	71,170		67,628		75,269
Total revenue	$	168,147	$	163,781	$	200,928

Revenue by Geographic Region	For the Fiscal Years Ended September 30,
(in thousands)	2013		2012		2011
United States	$	107,341	$	111,962	$	140,203
Asia	44,373		27,519		49,417
Europe	15,318		15,032		9,081
Other	1,115		9,268		2,227
Total revenue	$	168,147	$	163,781	$	200,928

Revenue by geographic location is determined based on the location of our customer.

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 had a significant impact on our operations and our ability to meet customer demand for certain of our fiber optics products. Our Photovoltaics segment was not affected by the Thailand floods. See Note 11 - Impact from Thailand Flood 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 transferred certain inventory purchase obligations associated with our Fiber Optics segment to SEI. See Note 1 - Description of Business for additional disclosures related to this asset sale.

Significant Customers: For the fiscal years ended September 30,2013, 2012, and 2011, our top 5 customers accounted for 34%, 33%, and 40%, respectively, of our annual consolidated revenue.  Significant customers are defined as customers that represented greater than 10% of total consolidated revenue, by reporting segment. No single customer from the Fiber segment represented greater than 10% of our consolidated revenue for the fiscal year ended September 30, 2013, 2012 and 2011.

No single customer from the Photovoltaics segment represented greater than 10% of our consolidated revenue for the fiscal year ended September 30, 2013. For the fiscal years ended September 30, 2012, and 2011, revenue from SSL represented 14%, and 11%, of our total consolidated revenue, respectively.

Revenue from Suncore represented 9% of our consolidated revenues for the fiscal year ended September 30, 2013. See Note 17 - Suncore Joint Venture for additional disclosures related to the Suncore revenues.

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

Operating Income (Loss)	For the Fiscal Years Ended September 30,
(in thousands)	2013			2012			2011
Fiber Optics operating income (loss)	$	(8,382	)	$	(26,684	)	$	(30,276	)
Photovoltaics operating income (loss)	8,602			(8,941		)	(2,251		)
Total operating income (loss)	$	220		$	(35,625	)	$	(32,527	)

Non-Cash Expenses: The following tables set forth our significant non-cash expenses attributable to each of our reporting segments.

Depreciation, Amortization, and Accretion Expense	For the Fiscal Years Ended September 30,
(in thousands)	2013		2012		2011
Fiber Optics segment	$	5,737	$	5,246	$	6,599
Photovoltaics segment	2,951		4,174		5,374
Total depreciation, amortization, and accretion expense	$	8,688	$	9,420	$	11,973

Stock-based Compensation Expense	For the Fiscal Years Ended September 30,
(in thousands)	2013		2012		2011
Fiber Optics segment	$	2,668	$	4,678	$	4,650
Photovoltaics segment	1,541		3,078		2,778
Total stock-based compensation expense	$	4,209	$	7,756	$	7,428

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.

Long-lived Assets	As of		As of
(in thousands)	September 30, 2013		September 30, 2012
Fiber Optics segment	$	23,804	$	24,209
Photovoltaics segment	40,048		40,252
Unallocated Corporate division	8,435		7,247
Long-lived assets	$	72,287	$	71,708

During the fiscal year ended September 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 September 30, 2013, 2012 and 2011, approximately 80%, 86% and 93%, respectively, of our long-lived assets were located in the United States. The remaining assets are primarily located in China and Thailand.