Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our Thin Films SBU offers power conversion products for direct current, pulsed DC mid frequency, and radio frequency power supplies, matching networks, and RF instrumentation, as well as, thermal instrumentation products. Our power conversion systems refine, modify, and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Our thermal instrumentation products provide temperature measurement solutions for applications in which time-temperature cycles affect material properties, productivity, and yield. These products are used in rapid thermal processing, chemical vapor deposition, and other semiconductor and solar applications requiring non-contact temperature measurement. Our network of global service support centers offer repair services, conversions, upgrades, and refurbishments to companies using our products. Our Thin Films SBU principally serves original equipment manufacturers (“OEMs”) and end customers in the semiconductor, flat panel display, solar panel, and other capital equipment markets.

Our Solar Energy SBU offers both a transformer-based and a transformerless advanced grid-tied PV inverter solution for commercial, and utility-scale system installations and transformer-based solutions for residential installations. Our PV inverters are designed to convert renewable solar power, drawn from large and small scale solar arrays, into high-quality, reliable electrical power. Our Solar Energy SBU focuses on residential, commercial, and utility-scale solar projects and installations, selling primarily to distributors, engineering, procurement, and construction contractors, developers, and utility companies. Our Solar Energy revenue has seasonal variations. Installations of inverters are normally lowest during the first quarter as a result of typically poor weather and installation scheduling by our customers.

Our chief operating decision maker, who is our Chief Executive Officer, and other management personnel regularly review our performance and make resource allocation decisions by reviewing the results of our two business segments separately. Revenue and operating profit is reviewed by our chief operating decision maker. We have also divided inventory and property and equipment based on business segment.

Sales with respect to our operating segments is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Thin Films	$	56,780	$	76,764	$	182,013	$	274,194
Solar Energy	60,735		51,734		156,947		130,110
Total	$	117,515	$	128,498	$	338,960	$	404,304

Income from continuing operations before income taxes by operating segment is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Thin Films	$	6,065		$	16,015		$	18,113		$	60,881
Solar Energy	7,410			1,259			10,643			4,092
Total segment operating income	13,475			17,274			28,756			64,973
Corporate expenses	(534		)	(3,481		)	(1,447		)	(9,505		)
Restructuring charges	(3,003		)	(3,119		)	(5,434		)	(3,119		)
Other income (expense)	65			(259		)	2,251			496
Income from continuing operations before income taxes	$	10,003		$	10,415		$	24,126		$	52,845

Beginning in 2012, we are allocating "Corporate expenses" in full to our business units. These expenses, which include certain support functions such as legal, human resources, information technology, accounting and finance, are now allocated in full to the business units based on sales contribution. This change was implemented in an effort to provide our chief operating decision maker with a clearer understanding of the business unit's operating performance. The remaining Corporate expenses consist of intangible amortization from past acquisitions.

Segment assets consist of inventories, net and property and equipment, net. A summary of consolidated total assets by segment is as follows (in thousands):

	September 30, 2012		December 31, 2011
Thin Films	$	46,290	$	59,025
Solar Energy	75,911		62,605
Total segment assets	122,201		121,630
Unallocated corporate property and equipment	4,189		991
Unallocated Corporate assets	395,263		410,757
Consolidated total assets	$	521,653	$	533,378

Unallocated corporate assets include accounts receivable, deferred income taxes and intangible assets.