VEECO INSTRUMENTS INC Segments Disclosure
Note 16 — Segment Reporting and Geographic Information
The Company operates and measures its results in one operating segment and therefore has one reportable segment: the development, manufacture, sales, and support of semiconductor and thin film process equipment primarily sold to make electronic devices. The accounting policies of this one operating segment are the same as those described in the summary of significant accounting policies. The Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, assesses segment performance and decides how to allocate resources based on net income that is reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as total assets. The Company does not have intra-entity sales or transfers. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the segment or into other
parts of the Company, such as for acquisitions. Net income is used to monitor forecast versus actual results. The CODM also uses net income in competitive analysis by benchmarking the Company’s competitors. The competitive analysis along with the monitoring of forecasted versus actual results are used in assessing performance of the segment. The Company regularly provides management reports to the CODM on a consolidated expense basis which includes actuals, forecasted, and budgeted information. These reports are similar to the Company’s consolidated financial statements. There are no additional expenses categories and amounts that meet the definition of significant expense items that are regularly provided to the CODM and included in the reported measure of net income.
Sales by end-market is as follows:
For the year ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
(in thousands) | |||||||||
Sales by end-market | |||||||||
Semiconductor | $ | 476,559 | $ | 466,611 | $ | 412,724 | |||
Compound Semiconductor | 59,557 | 77,591 | 87,258 | ||||||
Data Storage |
| 39,238 |
| 98,852 |
| 88,473 | |||
Scientific & Other |
| 88,940 |
| 74,247 |
| 77,980 | |||
Total | $ | 664,294 | $ | 717,301 | $ | 666,435 | |||
The Company’s significant operations outside the United States include sales and service offices in China, Europe, and Rest of APAC. For geographic reporting, sales are attributed to the location in which the customer facility is located.
Sales and long-lived tangible assets by geographic region are as follows:
Net Sales to Unaffiliated Customers | Long-lived Tangible Assets | |||||||||||||||||
| 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | |||||||
(in thousands) | ||||||||||||||||||
United States | $ | 101,387 | $ | 164,564 | $ | 162,790 | $ | 108,041 | $ | 112,966 | $ | 117,594 | ||||||
EMEA(1) |
| 50,794 |
| 61,730 |
| 76,697 |
| 36 |
| 154 |
| 219 | ||||||
China | 181,812 | 255,619 | 217,942 | 223 | 270 | 182 | ||||||||||||
Rest of APAC | 330,183 | 234,591 | 208,693 | 346 | 399 | 464 | ||||||||||||
Rest of World |
| 118 |
| 797 |
| 313 |
| — |
| — |
| — | ||||||
Total | $ | 664,294 | $ | 717,301 | $ | 666,435 | $ | 108,646 | $ | 113,789 | $ | 118,459 | ||||||
| (1) | EMEA consists of Europe, the Middle East, and Africa |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.