Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

18. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer. The CODM utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of technologies offered to customers.

Based upon the information provided to the CODM, the Company has determined it operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities are summarized below:

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures, particularly ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Vision

The Vision segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; visualization solutions; wireless technologies, video recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Precision Motion

The Precision Motion segment designs, manufactures and markets optical and inductive encoders, precision motors, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Revenue, gross profit, operating income (loss), depreciation and amortization expenses, accounts receivable and inventories by reportable segments were as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Revenue
Photonics	$	274,674	$	232,459	$	199,613
Vision		277,992		262,060		261,650
Precision Motion		308,237		212,274		129,360
Total	$	860,903	$	706,793	$	590,623

	Year Ended December 31,
	2022			2021			2020
Gross Profit
Photonics	$	129,173		$	107,993		$	89,060
Vision		108,713			100,890			100,267
Precision Motion		146,150			99,345			58,279
Unallocated Corporate and Shared Services		(5,564	)		(7,900	)		(3,089	)
Total	$	378,472		$	300,328		$	244,517

	Year Ended December 31,
	2022			2021			2020
Operating Income (Loss)
Photonics	$	63,760		$	46,792		$	34,001
Vision		28,244			17,694			16,354
Precision Motion		60,294			52,676			31,663
Unallocated Corporate and Shared Services		(49,219	)		(53,108	)		(26,130	)
Total	$	103,079		$	64,054		$	55,888

	Year Ended December 31,
	2022		2021		2020
Depreciation and Amortization Expenses
Photonics	$	10,999	$	11,600	$	11,261
Vision		17,402		20,812		21,374
Precision Motion		24,358		10,728		5,443
Unallocated Corporate and Shared Services		399		254		215
Total	$	53,158	$	43,394	$	38,293

	December 31,
	2022		2021
Accounts Receivable
Photonics	$	42,541	$	31,392
Vision		53,610		44,078
Precision Motion		41,546		40,147
Total accounts receivable	$	137,697	$	115,617
Inventories
Photonics	$	58,630	$	49,146
Vision		47,511		34,621
Precision Motion		61,856		41,890
Total inventories	$	167,997	$	125,657
Total segment assets	$	305,694	$	241,274

	December 31,
	2022		2021
Total Assets
Total segment assets	$	305,694	$	241,274
Cash and cash equivalents		100,105		117,393
Prepaid income taxes and income taxes receivable		1,508		1,997
Prepaid expenses and other current assets		13,212		13,161
Property, plant and equipment, net		103,186		87,439
Operating lease assets		43,317		48,338
Deferred tax assets		15,113		12,206
Other assets		4,414		5,586
Intangible assets, net		175,766		220,989
Goodwill		478,897		479,500
Total	$	1,241,212	$	1,227,883

Geographic Information

The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers is summarized as follows (in thousands, except percentage data):

	Year Ended December 31,
	2022					2021					2020
	Revenue		% of Total			Revenue		% of Total			Revenue		% of Total
United States	$	372,345		43.3	%	$	270,833		38.4	%	$	225,760		38.2	%
Germany		133,728		15.5			101,865		14.4			83,765		14.2
Rest of Europe		137,803		16.0			138,863		19.6			127,040		21.5
China		97,178		11.3			95,045		13.4			70,557		11.9
Rest of Asia-Pacific		101,596		11.8			89,198		12.6			74,334		12.6
Other		18,253		2.1			10,989		1.6			9,167		1.6
Total	$	860,903		100.0	%	$	706,793		100.0	%	$	590,623		100.0	%

Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):

	December 31,
	2022		2021
United States	$	27,488	$	27,587
Germany		36,545		33,344
U.K.		18,457		15,059
Czech Republic		13,779		637
China		6,518		6,521
Rest of World		399		4,291
Total	$	103,186	$	87,439

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

	Year Ended December 31,
	2022			2021			2020
Medical		49	%		52	%		56	%
Advanced Industrial		51	%		48	%		44	%
Total		100	%		100	%		100	%

The majority of the revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of the revenue from the Vision segment is generated from sales to customers in the medical market.

Significant Customers

No customer accounted for greater than 10% of the Company’s consolidated revenue during the years ended December 31, 2022 and December 31, 2021. For the year ended December 31, 2020, the Company recognized revenue from an OEM customer in the medical end market which accounted for approximately 11% of the Company’s consolidated revenue.