Segment Information

6 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment information

Segment Information

The Company has five operating segments in total. The Company’s CEO continues to function as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. Four of the operating segments: Protection Products Group; Power and High Reliability Products Group; Signal Integrity Products Group; and Wireless and Sensing Products Group, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the “Semiconductor Products Group”. The remaining operating segment, the Systems Innovation Group, cannot be aggregated with the other operating segments and does not meet the thresholds for a separate reportable segment as defined by the guidance regarding segment disclosure. Therefore, the Company has classified it as “All others” in the tables below. The Company’s assets are commingled among the various reporting units and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by segment below.

On August 5, 2016, the Company completed its divestiture of its Snowbush IP business (previously part of the Company’s Systems Innovation Group) to Rambus for approximately $32.0 million in cash along with the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. Following this divestiture, beginning in the third quarter of fiscal 2017, the Company will no longer have a Systems Innovation Group or an “All others” category.

Net sales by segment are as follows:

	Three Months Ended				Six Months Ended
(in thousands)	July 31, 2016		July 26, 2015		July 31, 2016		July 26, 2015
Semiconductor Products Group	$	135,911	$	125,648	$	267,056	$	253,895
All others	—		64		—		1,905
Total	$	135,911	$	125,712	$	267,056	$	255,800

Income by segment and reconciliation to consolidated operating income:

	Three Months Ended						Six Months Ended
(in thousands)	July 31, 2016			July 26, 2015			July 31, 2016			July 26, 2015
Semiconductor Products Group	$	32,497		$	22,709		$	59,954		$	48,038
All others	(1,915		)	(2,307		)	(2,476		)	(4,558		)
Operating Income by segment	30,582			20,402			57,478			43,480
Items to reconcile segment operating income to consolidated income before taxes
Intangible amortization and impairments	6,328			6,177			12,731			12,340
Stock-based compensation expense	6,097			2,335			11,804			8,281
Changes in the fair value of contingent earn-out obligations	(129		)	—			(162		)	—
Restructuring charges	—			3,564			—			3,564
Environmental reserve	—			520			—			2,855
Other non-segment related expenses	1,551			4,426			2,793			7,585
Amortization of fair value adjustments related to acquired PP&E	308			312			617			903
Interest expense, net	2,037			1,900			3,967			3,734
Non-operating expense (income), net	136			(117		)	181			376
Income before taxes	$	14,254		$	1,285		$	25,547		$	3,842

Information by Product Line

The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector.

The table below provides net sales activity by product line on a comparative basis for all periods.

	Three Months Ended								Six Months Ended
(in thousands, except percentages)	July 31, 2016				July 26, 2015				July 31, 2016				July 26, 2015
Signal Integrity	$	63,313	47	%	$	59,024	47	%	$	133,400	50	%	$	113,333	44	%
Protection	36,476		27	%	34,986		28	%	68,046		25	%	72,113		28	%
Wireless and Sensing	20,837		15	%	15,533		12	%	36,444		14	%	38,331		15	%
Power and High-Reliability	15,285		11	%	16,105		13	%	29,166		11	%	30,118		12	%
Systems Innovation	—		—	%	64		—	%	—		—	%	1,905		1	%
Total net sales	$	135,911	100	%	$	125,712	100	%	$	267,056	100	%	$	255,800	100	%

Geographic Information

The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed-signal devices.

Net sales activity by geographic region is as follows:

	Three Months Ended				Six Months Ended
	July 31, 2016		July 26, 2015		July 31, 2016		July 26, 2015
Asia-Pacific	73	%	73	%	75	%	73	%
North America	19	%	16	%	16	%	17	%
Europe	8	%	11	%	9	%	10	%
	100	%	100	%	100	%	100	%

The Company attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales for one or more of the periods presented:

	Three Months Ended				Six Months Ended
(percentage of total sales)	July 31, 2016		July 26, 2015		July 31, 2016		July 26, 2015
China (including Hong Kong)	44	%	45	%	46	%	44	%
United States	12	%	11	%	11	%	11	%

The Company’s regional (loss) income from continuing operations before income taxes is as follows:

	Three Months Ended						Six Months Ended
(in thousands)	July 31, 2016			July 26, 2015			July 31, 2016			July 26, 2015
Domestic	$	(6,440	)	$	(3,925	)	$	(13,985	)	$	(17,361	)
Canada	6,802			(1,266		)	17,917			14,054
United Kingdom	3,193			15,690			10,582			12,344
Switzerland	7,711			(7,070		)	7,027			8,348
Japan	1,534			552			2,126			1,062
Other Foreign	1,454			(2,696		)	1,880			(14,605		)
Total	$	14,254		$	1,285		$	25,547		$	3,842