Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our Thin Films SBU offers power conversion products for direct current, pulsed DC mid frequency, and radio frequency power supplies, matching networks, and RF instrumentation, as well as thermal instrumentation products. Our power conversion systems refine, modify, and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Our thermal instrumentation products provide temperature measurement solutions for applications in which time-temperature cycles affect material properties, productivity, and yield. These products are used in rapid thermal processing, chemical vapor deposition, and other semiconductor and solar applications requiring non-contact temperature measurement. Our network of global service support centers offer repair services, conversions, upgrades, and refurbishments to companies using our products. Our Thin Films SBU principally serves original equipment manufacturers ("OEMs") and end customers in the semiconductor, flat panel display, solar panel, and other capital equipment markets.

Our Solar Energy SBU offers both a transformer-based and a transformerless advanced grid-tied PV inverter solution primarily for commercial and utility-scale system installations. Our PV inverters are designed to convert renewable solar power, drawn from large and small scale solar arrays, into high-quality, reliable electrical power. Our Solar Energy SBU focuses on commercial and utility-scale solar projects and installations, selling primarily to distributors, engineering, procurement, and construction contractors, developers, and utility companies. Our Solar Energy revenue has seasonal variations. Installations of inverters are normally lowest during the first quarter as a result of typically poor weather and installation scheduling by our customers.

Our chief operating decision maker, who is our Chief Executive Officer, and other management personnel regularly review our performance and make resource allocation decisions by reviewing the results of our two business segments separately. Revenue and operating profit is reviewed by our chief operating decision maker. We have also divided inventory and property and equipment based on business segment.

Sales with respect to our operating segments is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Thin Films	$	71,702	$	64,843	$	133,479	$	125,233
Solar Energy	68,009		50,815		118,046		96,212
Total	$	139,711	$	115,658	$	251,525	$	221,445

Income from continuing operations before income taxes by operating segment is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Thin Films	$	14,406		$	8,881		$	21,917		$	12,048
Solar Energy	(1,772		)	2,740			(1,564		)	3,233
Total segment operating income	12,634			11,621			20,353			15,281
Corporate expenses	—			(451		)	—			(913		)
Restructuring (charges) benefit	(24,206		)	144			(24,206		)	(2,431		)
Other income (expense), net	(330		)	1,775			(533		)	2,186
Income (loss) from continuing operations before income taxes	$	(11,902	)	$	13,089		$	(4,386	)	$	14,123

Corporate expenses in 2012 consist of intangible amortization that is now being allocated to the business units.

Segment assets consist of inventories, net and property and equipment, net. A summary of consolidated total assets by segment follows (in thousands):

	June 30, 2013		December 31, 2012
Thin Films	$	41,549	$	40,965
Solar Energy	99,891		76,393
Total segment assets	141,440		117,358
Unallocated corporate property and equipment	1,515		3,647
Unallocated corporate assets	471,899		417,155
Consolidated total assets	$	614,854	$	538,160

"Corporate" is a non-operating business segment with the main purpose of supporting operations. Unallocated corporate assets include accounts receivable, deferred income taxes, other current assets and intangible assets.

During the three and six months ended June 30, 2013, we had one customer accounting for 10% or more of our sales. Sales to Applied Materials, Inc. were $22.9 million or 16.4% of total sales for the three month period and $41.6 million or 16.5% of total sales for the six month period. During the three and six months ended June 30, 2012, we had one customer accounting for 10% or more of our sales. Sales to Applied Materials, Inc. were $17.8 million or 15.4% of total sales during the three month period and $35.7 million or 16.1% of total sales during the six month period. Our sales to Applied Materials, Inc. include thin film products used in semiconductor processing and solar, flat panel display, and architectural glass applications. No other customer accounted for 10% or more of our sales during these periods.