Company and Industry Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Company and Industry Information

COMPANY AND INDUSTRY INFORMATION

Nature of Operations

Ultratech, Inc. develops, manufactures and markets photolithography, laser thermal processing and inspection equipment for manufacturers of integrated circuits and nanotechnology components located throughout North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia.

We supply step-and-repeat photolithography systems based on one-to-one imaging technology. Within the integrated circuit industry, we target the market for advanced packaging applications. Within the nanotechnology industry, our target markets include thin film head magnetic recording devices, laser diodes, high-brightness light emitting diodes (“HBLEDs”) and atomic layer deposition (“ALD”). Our laser thermal processing equipment is targeted at advanced annealing applications within the semiconductor industry.

Major Customers

In 2015, Siliconware Precision Industries Co. Ltd. (“SPIL”), Taiwan Semiconductor Manufacturing Co. Ltd. (“TSMC”) and Intel Corporation (“Intel”) accounted for 21%, 13%, and 10% of our total systems sales, respectively. In 2014, Intel, Samsung and Global Foundries Incorporated (“GFI”) accounted for 18%, 14% and 13% of our total system sales, respectively. In 2013, SPIL accounted for 16% of our total system sales.

At December 31, 2015, TSMC and Flash Forward, Ltd. accounted for 36% and 19% of our accounts receivable, respectively. At December 31, 2014, GFI, Samsung, SMIC, and Intel accounted for 16%, 14%, 14% and 11% of our accounts receivable, respectively.

Business Segments

In evaluating our business, we give consideration to the Chief Executive Officer’s review of financial information and the organizational structure of our management. Based on this review, we concluded that, at the present time, resources are allocated and other financial decisions are made based on consolidated financial information. Accordingly, we have determined that we operate in one business segment, which is the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components.

Enterprise-Wide Disclosures

Our products are manufactured in the United States and Singapore, and are sold worldwide. We market our products internationally through domestic and foreign-based sales and service offices. The following table presents enterprise-wide sales to external customers and long-lived assets by geographic region:

In thousands	2015		2014		2013
Net sales:
United States	$	28,297	$	47,629	$	43,383
International:
Taiwan	65,188		27,961		61,460
Rest of the world	22,104		26,474		19,871
Korea	4,420		25,752		7,416
Europe	15,639		17,688		13,660
Japan	13,528		5,036		11,482
Subtotal	120,879		102,911		113,889
Total	$	149,176	$	150,540	$	157,272
Long-lived assets:
United States	$	34,124	$	39,577	$	40,347
Singapore	5,049		5,367		7,913
Rest of the world	756		994		1,146
Total	$	39,929	$	45,938	$	49,406

The rest of the world is comprised of sales to customers and long-lived assets in countries that are individually insignificant.

With the exception of Japan, our operations in foreign countries are not currently subject to significant currency exchange rate fluctuations, principally because sales contracts for our systems are generally denominated in U.S. dollars. In Japan, we sell our products in both U.S. dollars and Japanese yen. However, we attempt to mitigate our currency exchange rate exposure through the use of currency forward contracts. (See “Derivative Instruments and Hedging” in Note 4.)