Segment Information

9 Months Ended

Sep. 26, 2014

Segment Reporting [Abstract]

Segment Information

14. Segment Information

The Company evaluates the performance of, and allocates resources to, its segments based on sales, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality of end markets, customers, applications and technologies amongst the Company’s individual product lines, which is consistent with the Company’s operating structure.

We operate in three reportable segments: Laser Products, Medical Technologies, and Precision Motion. The reportable segments and their principal activities consist of the following:

Laser Products

Our Laser Products segment designs, manufactures and markets photonics-based solutions to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, and medical and life science imaging and laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The business sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Medical Technologies

Our Medical Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, thermal printers, and light and color measurement instrumentation 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.

Precision Motion

Our Precision Motion segment designs, manufactures and markets optical encoders, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold into the electronics, industrial and, to a lesser extent, the medical markets. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Sales, gross profit, gross profit margin, operating income from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands):

	ThreeMonths Ended				Nine Months Ended
	September 26, 2014		September 27, 2013		September 26, 2014		September 27, 2013
Sales
Laser Products	$	45,806	$	44,714	$	131,494	$	123,311
Medical Technologies		32,680		19,718		89,838		65,410
Precision Motion		16,170		15,426		49,362		45,977
Total	$	94,656	$	79,858	$	270,694	$	234,698

	Three Months Ended						Nine Months Ended
	September 26, 2014			September 27, 2013			September 26, 2014			September 27, 2013
Gross Profit
Laser Products	$	20,269		$	19,252		$	54,437		$	51,436
Medical Technologies		12,945			7,535			35,672			25,271
Precision Motion		6,776			7,429			21,141			21,487
Corporate, Shared Services and Unallocated		(307	)		(55	)		(811	)		(163	)
Total	$	39,683		$	34,161		$	110,439		$	98,031

	Three Months Ended						Nine Months Ended
	September 26, 2014			September 27, 2013			September 26, 2014			September 27, 2013
Gross Profit Margin
Laser Products		44.2	%		43.1	%		41.4	%		41.7	%
Medical Technologies		39.6	%		38.2	%		39.7	%		38.6	%
Precision Motion		41.9	%		48.2	%		42.8	%		46.7	%
Total		41.9	%		42.8	%		40.8	%		41.8	%

	Three Months Ended						Nine Months Ended
	September 26, 2014			September 27, 2013			September 26, 2014			September 27, 2013
Operating Income from Continuing Operations
Laser Products	$	9,857		$	7,734		$	23,828		$	17,868
Medical Technologies		(1,115	)		(469	)		(1,194	)		1,375
Precision Motion		2,796			3,223			9,525			9,657
Corporate, Shared Services and Unallocated		(4,716	)		(4,689	)		(14,789	)		(16,249	)
Total	$	6,822		$	5,799		$	17,370		$	12,651

	Three Months Ended				Nine Months Ended
	September 26, 2014		September 27, 2013		September 26, 2014		September 27, 2013
Depreciation and Amortization
Laser Products	$	1,618	$	1,701	$	4,838	$	4,735
Medical Technologies		3,745		2,143		9,552		6,762
Precision Motion		444		486		1,451		1,471
Corporate, Shared Services and Unallocated		537		455		1,654		1,824
Total	$	6,344	$	4,785	$	17,495	$	14,792