Note 11 - Segment and Geographic Information

12 Months Ended

Dec. 28, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. Segment and Geographic Information

We applied the provisions of ASC 280, which sets forth a management approach to segment reporting and establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the CODM, which is our Chief Executive Officer, Luis A. Müller and for which discrete financial information is available. We have determined that our three identified operating segments are: THG, STG and ISG. Our THG, STG and ISG operating segments qualify for aggregation under ASC 280 due to similarities in their customers, their economic characteristics, and the nature of products and services provided. As a result, we report in one segment, Semiconductor Test & Inspection, which derives revenue from the design and manufacture of equipment and components used in the testing of semiconductors.

The CODM assesses performance of the Semiconductor Test & Inspection segment and decides how to allocate resources based on income (loss) before taxes. The table below summarizes selected financial information for our single reportable segment.

(in thousands)	2024			2023			2022
Net sales	$	401,779		$	636,322		$	812,775
Cost and expenses:
Cost of sales		220,436			332,609			428,803
Research and development		81,231			85,178			89,489
Selling		51,584			61,056			60,006
General and administrative		60,328			58,196			60,212
Amortization of purchased intangible assets		39,087			36,355			33,185
Stock-based compensation		20,740			17,237			14,918
Other segment items (1)		(6,681	)		(125	)		(553	)
Income (loss) before taxes	$	(64,946	)	$	45,816		$	126,715

(1) Other segment items include restructuring charges as well as miscellaneous non-operating items.

During the last three years, the following customers comprised 10% or greater of our consolidated net sales:

	2024		2023			2022
STMicroelectronics		*		12.0	%		*

* Less than 10% of consolidated net sales.

Net sales to customers, attributed to countries based on product shipment destination, were as follows:

(in thousands)	2024		2023		2022
China	$	59,491	$	92,408	$	146,227
United States		56,663		76,995		79,093
Malaysia		54,016		100,949		99,508
Philippines		51,310		92,529		111,647
Singapore		40,827		53,518		67,019
Rest of the world		139,472		219,923		309,281
Total, net	$	401,779	$	636,322	$	812,775

The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. Geographic location of our property, plant and equipment and other long-lived assets was as follows:

(in thousands)	2024		2023
Property, plant and equipment:
Philippines	$	23,072	$	22,501
Germany		15,705		15,843
Malaysia		15,264		4,700
United States		13,601		16,093
Japan		6,051		7,810
Rest of the world		1,093		2,138
Total, net	$	74,786	$	69,085
Goodwill and other intangible assets:
Germany	$	128,513	$	149,592
United States		92,251		111,660
Malaysia		61,252		63,249
Singapore		56,276		60,875
Rest of the world		7,064		8,052
Total, net	$	345,356	$	393,428