SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Oct. 01, 2011

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 10:  SEGMENT AND GEOGRAPHIC INFORMATION

Segment information

The Company operates two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders and die bonders that are sold to semiconductor device manufacturers, their outsourced semiconductor assembly and test subcontractors, other electronics manufacturers and automotive electronics suppliers. The Company also services, maintains, repairs and upgrades its equipment. The Expendable Tools segment manufactures and sells a variety of expendable tools for a broad range of semiconductor packaging applications.

The following table reflects operating information by segment for fiscal 2011, 2010 and 2009:

	Fiscal
(in thousands)	2011		2010		2009
Net revenue:
Equipment	$	759,331	$	691,988	$	170,536
Expendable Tools		71,070		70,796		54,704
Net revenue		830,401		762,784		225,240
Cost of sales:
Equipment		412,914		399,042		111,103
Expendable Tools		29,578		28,069		25,294
Cost of sales		442,492		427,111		136,397
Gross profit:
Equipment		346,417		292,946		59,433
Expendable Tools		41,492		42,727		29,410
Gross profit		387,909		335,673		88,843
Operating expenses:
Equipment		189,631		155,625		135,465
Expendable Tools		28,218		32,013		24,193
Operating expenses		217,849		187,638		159,658
Impairment of goodwill: Equipment		-		-		2,709
Income (loss) from operations:
Equipment		156,786		137,321		(78,741	)
Expendable Tools		13,274		10,714		5,217
Income (loss) from operations	$	170,060	$	148,035	$	(73,524	)

The following tables reflect assets by segment, capital expenditures and depreciation expense as of and for fiscal 2011, 2010, and 2009:

	As of
(in thousands)	October 1, 2011		October 2, 2010		October 3, 2009
Segment assets:
Equipment  (1)	$	639,149	$	493,712	$	303,835
Expendable Tools   (1)		89,242		86,457		108,800
Total assets	$	728,391	$	580,169	$	412,635

(1)  Increase in the Company's Equipment segment and decrease in Expendable Tools from fiscal 2010 to 2011 due to allocation, based upon fiscal year net revenue, of non-segment specific corporate assets. Corporate assets include: cash, cash equivalents, restricted cash, short-term investments, deferred tax assets and other assets.

	Fiscal
(in thousands)	2011		2010		2009
Capital expenditures:
Equipment	$	4,229	$	4,508	$	3,245
Expendable Tools		3,459		1,763		2,018
Total capital expenditures	$	7,688	$	6,271	$	5,263
Depreciation expense:
Equipment	$	5,955	$	5,853	$	6,551
Expendable Tools		2,257		2,133		3,581
Total depreciation expense	$	8,212	$	7,986	$	10,132

Geographic information

The following tables reflect destination sales to unaffiliated customers by country and long lived assets by country for fiscal 2011, 2010, and 2009:

	Fiscal
(in thousands)	2011		2010		2009
Destination sales to unaffiliated customers:
Taiwan	$	240,390	$	222,919	$	42,360
China		132,933		142,467		38,505
Korea		114,130		88,289		24,256
Hong Kong		104,481		83,713		24,183
Malaysia		46,831		43,191		11,959
Singapore		33,503		22,603		10,315
Japan		28,747		31,651		12,150
Thailand		19,539		24,766		-
United States		17,955		10,470		6,860
Philippines		16,806		35,029		-
All other		75,086		57,686		54,652
Total destination sales to unaffiliated customers	$	830,401	$	762,784	$	225,240
	Fiscal
(in thousands)	2011		2010		2009
Long-lived assets:
Singapore	$	74,130	$	4,530	$	2,121
United States		13,043		81,849		90,914
Israel		7,887		2,637		7,202
Switzerland		6,522		10,307		10,793
China		4,470		4,207		3,969
All other		2,498		3,949		2,175
Total long-lived assets	$	108,550	$	107,479	$	117,174