REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

9 Months Ended

Sep. 30, 2013

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

NOTE 15—REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

ASC 280–10–50 Disclosure about Segment of an Enterprise and Related Information, establishes standards for the manner in which companies report information about operating segments, products, geographic areas and major customers. The method of determining what information to report is based on the way that management organizes the operating segment within the enterprise for making operating decisions and assessing financial performance. Since the Company has one product line, sells to global customers in one industry, procures raw materials from similar vendors and expects similar long–term economic characteristics, the Company has one reporting segment and the information as to its operation is set forth below.

Adjusted EBITDA is the main metric used by the management team and the Board of Directors to plan, forecast and review the Company’s segment performance. Adjusted EBITDA represents net loss from continuing operations before interest income and expense, income tax expense, depreciation, amortization of intangible assets, goodwill impairment, stock–based compensation expense, amortization of deferred financing costs, restructuring and certain non–recurring income and expenses from the results of operations.

The following tables set forth information about the Company’s operations by its reportable segment and by geographic area:

Operations by Reportable Segment

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2013			2012			2013			2012
Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations
Adjusted EBITDA	$	(4,646	)	$	(540	)	$	(13,551	)	$	6,565
Depreciation and amortization	(487		)	(4,149		)	(1,503		)	(12,480		)
Amortization of deferred financing costs	(155		)	(899		)	(189		)	(1,062		)
Interest expense, net	—			(85		)	(6		)	(196		)
Income tax benefit	268			2,800			4,346			5,250
Restructuring	(491		)	—			(2,155		)	—
Goodwill impairment	—			—			—			(82,524		)
Stock–based compensation	(563		)	(704		)	(1,677		)	(3,682		)
Gain (loss) on disposal of fixed assets	140			(2		)	100			(2		)
Net Loss from Continuing Operations	$	(5,934	)	$	(3,579	)	$	(14,635	)	$	(88,131	)

Operations by Geographic Area

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2013		2012		2013		2012
Net Sales
Spain	$	4,394	$	10,913	$	13,186	$	34,264
Malaysia	1,430		9,279		9,610		30,689
United States	52		2,900		1,907		14,341
China	343		—		486		—
Total Net Sales	$	6,219	$	23,092	$	25,189	$	79,294

Long–Lived Assets by Geographic Area

	September 30,		December 31,
	2013		2012
Long–Lived Assets
United States	$	6,965	$	6,738
Malaysia	9,520		9,063
Spain	9,204		9,772
China	2,976		2,170
Hong Kong	4		7
Total Long–Lived Assets	$	28,669	$	27,750

Foreign sales are based on the country in which the sales originate. Net sales to two of the Company’s major customers that exceeded 10% of the Company’s consolidated net sales for the three months ended September 30, 2013 was $2,199.  Net sales to four of the Company’s major customers that exceeded 10% of the Company’s consolidated net sales for the nine months ended September 30, 2013 was $15,836.  Net sales to one of the Company’s major customers that exceeded 10% of the Company’s consolidated net sales for the three months and nine months ended September 30, 2012 was $10,188 and $28,737, respectively.

Accounts receivable from the four customers amounted to $2,312 and accounts receivable from one customer amounted to and $1,967 as of September 30, 2013 and December 31, 2012, respectively.