v3.24.3
Business Segment and Geographic Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segment and Geographic Information
(15)
Business Segment and Geographic Information

The Company has three reportable segments: VSD, PSD and MSD. The Company’s CODM, which is the Company’s Chief Executive Officer, utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance and allocate resources to the three segments.

Reportable Segments

VSD delivers foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products are derived from the Company’s core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, temperature sensing, and vacuum technology.

PSD provides a full range of solutions including lasers, beam measurement and profiling, precision motion control, vibration isolation systems, photonics instruments, opto-mechanical components, optical elements, laser-based systems for flexible printed circuit board (“PCB”) processing, and laser-based systems for high density interconnect PCB and package substrate manufacturing.

MSD develops leading process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing. Applying a comprehensive systems-and-solutions approach, MSD’s portfolio includes chemistry, equipment, and services for innovative and high-technology applications in a wide variety of end markets.

The Company derives its segment results directly from the manner in which results are reported in its management reporting system. The accounting policies that the Company uses to derive reportable segment results are substantially the same as those used for external reporting purposes. The Company groups similar products within its three reportable segments.

During the quarter ended March 31, 2024, the Company moved its OSP product line from the PSD segment to the VSD segment. The purpose of this realignment was to better align the OSP products with semiconductor related products within the VSD segment. Prior periods have been recast to reflect this change.

The following table sets forth net revenues by reportable segment:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

VSD

 

$

345

 

 

$

354

 

 

$

1,012

 

 

$

1,092

 

PSD

 

 

251

 

 

 

267

 

 

 

759

 

 

 

724

 

MSD

 

 

300

 

 

 

311

 

 

 

881

 

 

 

914

 

 

$

896

 

 

$

932

 

 

$

2,652

 

 

$

2,730

 

The following table reconciles gross profit by reportable segment to net income (loss):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Gross profit by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

VSD

 

$

148

 

 

$

148

 

 

$

431

 

 

$

456

 

PSD

 

 

113

 

 

 

110

 

 

 

341

 

 

 

310

 

MSD

 

 

171

 

 

 

168

 

 

 

495

 

 

 

465

 

Total gross profit by reportable segment

 

 

432

 

 

 

426

 

 

 

1,267

 

 

 

1,231

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

70

 

 

 

71

 

 

 

206

 

 

 

218

 

Selling, general and administrative

 

 

167

 

 

 

167

 

 

 

498

 

 

 

514

 

Acquisition and integration costs

 

 

3

 

 

 

3

 

 

 

6

 

 

 

14

 

Restructuring and other

 

 

1

 

 

 

1

 

 

 

6

 

 

 

13

 

Fees and expenses related to amendments to the Term Loan Facility

 

 

2

 

 

 

—

 

 

 

5

 

 

 

—

 

Amortization of intangible assets

 

 

61

 

 

 

68

 

 

 

184

 

 

 

225

 

Goodwill and intangible asset impairments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,827

 

Gain on sale of long-lived assets

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

Income (loss) from operations

 

 

128

 

 

 

118

 

 

 

362

 

 

 

(1,578

)

Interest income

 

 

(6

)

 

 

(4

)

 

 

(17

)

 

 

(10

)

Interest expense

 

 

64

 

 

 

93

 

 

 

230

 

 

 

266

 

Loss on extinguishment of debt

 

 

5

 

 

 

—

 

 

 

52

 

 

 

—

 

Other expense (income), net

 

 

5

 

 

 

7

 

 

 

(3

)

 

 

14

 

Income (loss) before income taxes

 

 

60

 

 

 

22

 

 

 

100

 

 

 

(1,848

)

(Benefit) provision for income taxes

 

 

(2

)

 

 

(17

)

 

 

1

 

 

 

(76

)

Net income (loss)

 

$

62

 

 

$

39

 

 

$

99

 

 

$

(1,772

)

Interest income, interest expense and income tax (benefit) provision are not presented by reportable segment because the necessary information is not classified within the segments nor used by the CODM.

The following table sets forth segment assets by reportable segment:

September 30, 2024

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

180

 

 

$

510

 

 

$

690

 

PSD

 

 

169

 

 

 

267

 

 

 

436

 

MSD

 

 

260

 

 

 

163

 

 

 

423

 

Total segment assets

 

$

609

 

 

$

940

 

 

$

1,549

 

 

December 31, 2023

 

Accounts
 receivable, net

 

 

Inventories

 

 

Total

 

VSD

 

$

181

 

 

$

553

 

 

$

734

 

PSD

 

 

171

 

 

 

283

 

 

 

454

 

MSD

 

 

251

 

 

 

155

 

 

 

406

 

Total segment assets

 

$

603

 

 

$

991

 

 

$

1,594

 

 

The following table reconciles total segment assets to total assets:

 

 

September 30, 2024

 

 

December 31, 2023

 

Total segment assets

 

$

1,549

 

 

$

1,594

 

Cash and cash equivalents

 

 

861

 

 

 

875

 

Other current assets

 

 

258

 

 

 

227

 

Property, plant and equipment, net

 

 

770

 

 

 

784

 

Right-of-use assets, net

 

 

247

 

 

 

225

 

Goodwill and intangible assets, net

 

 

5,010

 

 

 

5,173

 

Other assets

 

 

328

 

 

 

240

 

Total assets

 

$

9,023

 

 

$

9,118

 

 

Goodwill associated with each of the Company’s reportable segments is as follows:

 

 

VSD

 

 

PSD

 

 

MSD

 

 

Total

 

Reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill, at December 31, 2023

 

$

359

 

 

$

1,007

 

 

$

3,021

 

 

$

4,387

 

Foreign currency translation

 

 

(1

)

 

 

2

 

 

 

12

 

 

 

13

 

Gross goodwill, at September 30, 2024

 

 

358

 

 

 

1,009

 

 

 

3,033

 

 

 

4,400

 

Accumulated goodwill impairment, at December 31, 2023 and September 30, 2024

 

 

(141

)

 

 

(390

)

 

 

(1,302

)

 

 

(1,833

)

Goodwill, net of accumulated impairment and foreign currency translation, at September 30, 2024

 

$

217

 

 

$

619

 

 

$

1,731

 

 

$

2,567

 

 

Geographic Area

Information about the Company’s operations by geographic area is presented in the tables below. Starting in the second quarter of 2024, the Company changed its basis of reporting geographical net revenues from the location in which the sale originated to the shipped-to location of the end customer. Prior periods have been recast to reflect this change, which was made to better align with how management reviews geographic net revenues. Intercompany sales between geographic areas are at tax transfer prices and have been eliminated from consolidated net revenues.

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

Net revenues:

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

194

 

 

$

236

 

 

$

615

 

 

$

688

 

China

 

 

192

 

 

 

192

 

 

 

561

 

 

 

552

 

South Korea

 

 

89

 

 

 

93

 

 

 

260

 

 

 

262

 

Taiwan

 

 

66

 

 

 

67

 

 

 

176

 

 

 

195

 

Japan

 

 

65

 

 

 

68

 

 

 

177

 

 

 

208

 

Singapore

 

 

60

 

 

 

52

 

 

 

171

 

 

 

176

 

Other

 

 

230

 

 

 

224

 

 

 

692

 

 

 

649

 

 

$

896

 

 

$

932

 

 

$

2,652

 

 

$

2,730

 

Long-lived assets include property, plant and equipment, net, right-of-use assets, net and certain other assets.

Long-lived assets:

 

September 30, 2024

 

 

December 31, 2023

 

United States

 

$

414

 

 

$

459

 

China

 

 

168

 

 

 

163

 

Germany

 

 

138

 

 

 

149

 

Other

 

 

350

 

 

 

326

 

 

$

1,070

 

 

$

1,097