Segment Information

3 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Segment Information

16. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) utilizes certain 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 is 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 that it operates in three reportable segments: Precision Medicine and Manufacturing, Medical Solutions, and Robotics and Automation. The reportable segments and their principal activities are described below.

Precision Medicine and Manufacturing

The Precision Medicine and Manufacturing 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, 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 directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Medical Solutions

The Medical Solutions 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; embedded touch screen solutions; and high precision customized subsystems. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Robotics and Automation

The Robotics and Automation 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, 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 directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data):

	Three Months Ended
	March 29,		March 31,
Revenue	2024		2023
Precision Medicine and Manufacturing	$	65,234	$	69,528
Medical Solutions		102,452		77,640
Robotics and Automation		63,230		71,958
Total	$	230,916	$	219,126

	Three Months Ended
	March 29,			March 31,
Gross Profit	2024			2023
Precision Medicine and Manufacturing	$	31,784		$	34,333
Medical Solutions		39,391			31,886
Robotics and Automation		30,549			32,815
Unallocated Corporate and Shared Services		(1,308	)		(1,406	)
Total	$	100,416		$	97,628

	Three Months Ended
	March 29,			March 31,
Gross Profit Margin	2024			2023
Precision Medicine and Manufacturing		48.7	%		49.4	%
Medical Solutions		38.4	%		41.1	%
Robotics and Automation		48.3	%		45.6	%
Total		43.5	%		44.6	%

	Three Months Ended
	March 29,			March 31,
Operating Income (Loss)	2024			2023
Precision Medicine and Manufacturing	$	15,744		$	16,684
Medical Solutions		11,989			9,841
Robotics and Automation		12,216			12,000
Unallocated Corporate and Shared Services		(14,342	)		(12,213	)
Total	$	25,607		$	26,312

	Three Months Ended
	March 29,		March 31,
Depreciation and Amortization Expenses	2024		2023
Precision Medicine and Manufacturing	$	2,362	$	2,596
Medical Solutions		6,090		3,973
Robotics and Automation		4,001		4,845
Unallocated Corporate and Shared Services		476		317
Total	$	12,929	$	11,731

Revenue by Geography

The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands):

	Three Months Ended
	March 29,		March 31,
	2024		2023
United States	$	117,081	$	103,842
Germany		33,181		34,862
Rest of Europe		30,971		29,365
China		17,071		17,798
Rest of Asia-Pacific		27,256		28,111
Other		5,356		5,148
Total	$	230,916	$	219,126

The majority of revenue from Precision Medicine and Manufacturing, Medical Solutions and Robotics and Automation segments is generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue.

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:

	Three Months Ended
	March 29,			March 31,
	2024			2023
Medical		55	%		54	%
Advanced Industrial		45	%		46	%
Total		100	%		100	%

The majority of revenue from the Precision Medicine and Manufacturing and Robotics and Automation segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Medical Solutions segment is generated from sales to customers in the medical market.