Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

17. Segment Information

Reportable Segments

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, which is the Chief Executive Officer. The Company’s reportable segments have been identified based on the Company’s operating structure and commonality of end markets, customers and technologies amongst the Company’s individual product lines.

The Company previously operated in three reportable segments: Laser Products, Precision Motion and Technologies and Semiconductor Systems. The Company committed to a plan for the sale of the Semiconductor Systems and Laser Systems businesses in the second quarter of 2012. As a result, these businesses have been reported as discontinued operations in the consolidated financial statements. Reportable segment financial information has been revised to exclude these businesses. The remaining reportable segments and their principal activities consist of the following:

Laser Products

The Laser Products segment designs, manufactures and markets photonics-based solutions to customers worldwide. The segment serves highly demanding photonics-based applications such as cutting, welding, marking 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, optical encoders, thermal printers, laser scanning devices, optics and light and color measurement instrumentation 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 (“OEMs”). The segment sells these products both directly utilizing a highly technical sales force and indirectly through resellers and distributors.

Reportable Segment Financial Information

The following table represents sales and gross margin of the Company’s reportable segments (in thousands):

	Year Ended December 31,
	2012			2011			2010
Sales
Laser Products	$	108,186		$	112,914		$	105,020
Precision Motion and Technologies		163,312			191,382			180,872
Total	$	271,498		$	304,296		$	285,892
	Year Ended December 31,
	2012			2011			2010
Gross Profit
Laser Products	$	36,582		$	43,948		$	43,542
Precision Motion and Technologies		78,819			91,142			88,779
Corporate(1)		(925	)		(1,990	)		(1,707	)
Total	$	114,476		$	133,100		$	130,614

(1) Corporate costs primarily represent unallocated overhead related to discontinued operations.

The Company reports operating expenses and assets on a consolidated basis to the chief operating decision maker.

Geographic Information

The Company aggregates geographic sales based on the customer location where products are shipped. Sales to these customers are as follows (in thousands except percentage data):

	2012					2011					2010
	Sales		% of Total			Sales		% of Total			Sales		% of Total
United States	$	86,310		31.8	%	$	102,792		33.8	%	$	95,223		33.3	%
Asia-Pacific		67,717		24.9			72,201		23.7			82,558		28.9
Japan		27,808		10.2			30,597		10.1			32,784		11.5
Europe		81,815		30.1			91,637		30.1			73,460		25.7
Other		7,848		3.0			7,069		2.3			1,867		0.6
Total	$	271,498		100.0	%	$	304,296		100.0	%	$	285,892		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 as of December 31, 2012 and 2011 are as follows (in thousands):

	2012		2011
United States	$	22,679	$	26,742
Europe		5,963		4,866
Japan		208		419
Asia-Pacific and other		3,488		3,928
Total	$	32,338	$	35,955

Significant Customers

No customers accounted for greater than 10% of the Company’s sales during the years ended December 31, 2012, 2011 or 2010.