Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

12. Segment Information

     The Company has organized its business segments according to its key product lines. The Brick Business Unit segment (“BBU”) designs, develops, manufactures and markets the Company’s modular power converters and configurable products, and also includes the operations of the Company’s Westcor division, the six entities comprising Vicor Custom Power, and the BBU operations of Vicor Japan Company, Ltd. (“VJCL”). The V*I Chip segment includes V*I Chip Corporation, which designs, develops, manufactures and markets the Company’s factorized power architecture (“FPA”) products. The V*I Chip segment also includes the V*I Chip business conducted through VJCL. Picor Corporation designs, develops, manufactures and markets integrated circuits and related products for use in a variety of power management and power system applications. Picor develops these products to be sold as part of the Company’s products or to third parties for separate applications.

     During the fourth quarter of 2010, the Company began to include the net revenues and cost of revenues for shipments of V*I Chip products by VJCL in the V*I Chip segment, along with an allocation of certain VJCL operating expenses from the BBU to the V*I Chip segment. Previously, all VJCL operating activity had been included in the BBU segment. The segment information for the three and nine months ended September 30, 2010 has been reclassified to conform to this new presentation.

     The Corporate segment consists of those operations and assets shared by all segments. The costs of certain centralized executive and administrative functions are recorded in this segment, as are certain shared assets, most notably the Company’s facilities, real estate, and certain investments.

     The following table provides significant segment financial data as of and for the three months ended September 30, (in thousands):

	BBU		V*I Chip			Picor			Corporate			Eliminations			Total
	(1)		(1)									(1) (2)
2011:
Net revenues	$	43,968	$	13,609		$	3,421		$	—		$	(2,438	)	$	58,560
Income (loss) from operations		5,941		(3,646	)		(508	)		(113	)		—			1,674
Total assets		80,801		30,611			7,885			112,465			(23,778	)		207,984
Depreciation and amortization		1,410		899			117			386			—			2,812
2010:
Net revenues	$	60,199	$	8,501		$	3,240		$	—		$	(3,268	)	$	68,672
Income (loss) from operations		17,425		(5,958	)		83			(168	)		—			11,382
Total assets		239,570		27,805			3,963			94,771			(167,676	)		198,433
Depreciation and amortization		1,240		894			96			365			—			2,595

     The following table provides significant segment financial data as of and for the nine months ended September 30, (in thousands):

	BBU		V*I Chip			Picor			Corporate			Eliminations			Total
2011:
Net revenues	$	148,625	$	42,964		$	10,361		$	—		$	(7,533	)	$	194,417
Income (loss) from operations		25,267		(11,665	)		(550	)		(574	)		—			12,478
Total assets		80,801		30,611			7,885			112,465			(23,778	)		207,984
Depreciation and amortization		4,100		2,674			342			1,098			—			8,214
2010:
Net revenues	$	158,982	$	19,311		$	7,923		$	—		$	(8,458	)	$	177,758
Income (loss) from operations		39,202		(19,240	)		(904	)		(451	)		(8	)		18,599
Total assets		239,570		27,805			3,963			94,771			(167,676	)		198,433
Depreciation and amortization		3,550		2,582			309			1,111			—			7,552

(1)

During the fourth quarter of 2010, the Company completed a recapitalization of V*I Chip Corporation. The impact of the recapitalization on V*I Chip was to eliminate its intercompany payable to BBU of approximately $172,100,000 and institute capital accounts totaling $50,000,000 as of December 31, 2010. There was no impact on the consolidated financial statements as a result of this recapitalization.

(2)

The elimination for net revenues is principally related to inter-segment revenues of Picor to BBU and V*I Chip and for inter-segment revenues of V*I Chip to BBU. The elimination for total assets is principally related to inter-segment accounts receivable due to BBU for the funding of V*I Chip operations and for the purchase of equipment for both V*I Chip and Picor.