REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

9 Months Ended

Sep. 30, 2015

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

REPORTABLE SEGMENT AND GEOGRAPHICAL INFORMATION

NOTE 17—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 operations 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, income tax expense, depreciation, stock-based compensation expense, 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 Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Reconciliation of Adjusted EBITDA to Net Loss from Continuing Operations
Adjusted EBITDA	$	(3,341	)	$	(2,930	)	$	(7,590	)	$	(9,835	)
Depreciation	(421		)	(514		)	(1,423		)	(1,540		)
Interest income (expense), net	13			3			(35		)	23
Income tax benefit (expense)	422			559			316			(176		)
Restructuring	(1,524		)	—			(1,663		)	730
Stock–based compensation	(178		)	(322		)	(553		)	(1,023		)
Non-cash reversal of loss contingency (Note 10)	—			—			—			4,089
Loss on reclassification of held for sale assets	(722		)	—			(722		)	(1,323		)
Loss on disposal of fixed assets	—			(20		)	—			(451		)
Net Loss from Continuing Operations	$	(5,751	)	$	(3,224	)	$	(11,670	)	$	(9,506	)

Operations by Geographic Area

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Sales
Spain	$	3,884	$	5,661	$	12,682	$	19,445
Malaysia	433		2,154		4,022		6,953
United States	1		1		50		52
China	2,276		1,698		5,218		3,622
Total Net Sales	$	6,594	$	9,514	$	21,972	$	30,072

Long-Lived Assets by Geographic Area

	September 30,		December 31,
	2015		2014
Long-Lived Assets
United States	$	1,637	$	583
Malaysia	—		8,611
Spain	7,034		7,997
China	2,563		3,004
Hong Kong	2		—
Total Long-Lived Assets	$	11,236	$	20,195

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 and nine months ended September 30, 2015, were $1,398 and $7,090, respectively. Net sales to one of the Company’s major customers, that exceeded 10% of the Company’s consolidated net sales for the three and nine months ended September 30, 2014, were $3,528 and $11,651, respectively.

Accounts receivable from the two customers amounted to $1,433 and accounts receivable from the one customer amounted to $6,334 as of September 30, 2015 and December 31, 2014, respectively.