Segment Information

3 Months Ended

Mar. 30, 2012

Segment Information

14. Segment Information

Reportable Segments

The Company operates in three reportable segments: Laser Products, Precision Motion and Technologies and Semiconductor Systems. The Company’s chief operating decision maker is the Chief Executive Officer. The Company evaluates the performance of and allocates resources to its segments based on sales and gross profit. The Company reports operating expenses and assets on a consolidated basis to the chief operating decision maker. The Company’s reportable segments have been identified based on commonality of end markets, customers and technologies amongst the Company’s individual product lines, which is consistent with the Company’s operating structure and associated management structure. The Company’s reportable segments and their principal activities consist of the following:

Laser Products

The Laser Products segment designs, manufactures and markets photonics-based solutions, consisting of lasers and laser-based systems, to customers worldwide. The segment serves highly demanding photonics-based applications such as cutting, welding, marking, engraving, micro-machining, and scientific research. The segment sells these products both directly utilizing a highly technical sales force and indirectly through resellers and distributors.

Precision Motion and Technologies

The Precision Motion and Technologies segment designs, manufactures and markets air bearing spindles, encoders, thermal printers, laser scanning devices, and light and color measurement systems to customers worldwide. The vast majority of the segment’s product offerings in precision motion and optical control technologies are sold to original equipment manufacturers (“OEM’s”). The segment sells these products both directly utilizing a highly technical sales force and indirectly through resellers and distributors.

Semiconductor Systems

The Semiconductor Systems segment designs, develops and sells laser-based production systems for semiconductor, microelectronics and electronics manufacturing. The segment offers a full spectrum of production systems, featuring high precision laser and motion technology, to process semiconductor wafers, LCD panels and microelectronic components. Semiconductor Systems’ solutions address a wide range of applications in a variety of end markets, including industrial, scientific, consumer electronics, medical, and aerospace. The segment supplies leading global foundries, integrated design manufacturers and component manufacturers.

Reportable Segment Financial Information

	Three Months Ended
	March 30, 2012			April 1, 2011
	(In thousands)
Sales
Laser Products
External	$	29,778		$	30,696
Intersegment		387			531
Precision Motion and Technologies
External		39,472			50,628
Intersegment		216			231
Semiconductor Systems
External		9,557			10,534
Intersegment		—			—
Intersegment sales elimination		(603	)		(762	)
Total	$	78,807		$	91,858
	Three Months Ended
	March 30, 2012			April 1, 2011
	(In thousands)
Gross Profit
Laser Products
External	$	10,253		$	10,795
Intersegment		206			308
Precision Motion and Technologies
External		18,494			23,947
Intersegment		104			120
Semiconductor Systems
External		4,025			5,152
Intersegment		—			—
Intersegment gross profit elimination		(310	)		(428	)
Total	$	32,772		$	39,894