Segment Information

6 Months Ended

Jul. 03, 2015

Segment Reporting [Abstract]

Segment Information

14. Segment Information

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 of end markets, customers, applications and technologies amongst the Company’s individual product lines, which is consistent with the Company’s operating structure, associated management structure, and management compensation programs.

We operate in three reportable segments: Laser Products, Vision Technologies (formerly known as Medical Technologies), and Precision Motion. The reportable segments and their principal activities are summarized below.

Laser Products

The Laser Products segment designs, manufactures and markets photonics-based solutions, including CO2 laser sources, laser scanning and beam delivery products, 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 segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Vision Technologies

The Vision 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

The Precision Motion segment designs, manufactures and markets optical encoders, precision motor and motion control technology, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold into the advanced industrial market and, to a lesser extent, the medical market. 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, gross profit margin, operating income (loss) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 3, 2015		June 27, 2014		July 3, 2015		June 27, 2014
Revenue
Laser Products	$	42,190	$	43,828	$	87,145	$	85,688
Vision Technologies		31,216		34,791		62,327		57,158
Precision Motion		23,088		18,286		41,636		33,192
Total	$	96,494	$	96,905	$	191,108	$	176,038

	Three Months Ended						Six Months Ended
	July 3, 2015			June 27, 2014			July 3, 2015			June 27, 2014
Gross Profit
Laser Products	$	18,950		$	17,155		$	38,325		$	34,168
Vision Technologies		12,158			13,838			24,671			22,727
Precision Motion		10,611			7,949			19,076			14,365
Unallocated Corporate and Shared Services		(374	)		(291	)		(721	)		(504	)
Total	$	41,345		$	38,651		$	81,351		$	70,756

	Three Months Ended						Six Months Ended
	July 3, 2015			June 27, 2014			July 3, 2015			June 27, 2014
Gross Profit Margin
Laser Products		44.9	%		39.1	%		44.0	%		39.9	%
Vision Technologies		38.9	%		39.8	%		39.6	%		39.8	%
Precision Motion		46.0	%		43.5	%		45.8	%		43.3	%
Total		42.8	%		39.9	%		42.6	%		40.2	%

	Three Months Ended						Six Months Ended
	July 3, 2015			June 27, 2014			July 3, 2015			June 27, 2014
Operating Income (Loss) from Continuing Operations
Laser Products	$	10,046		$	6,847		$	18,441		$	13,971
Vision Technologies		(14	)		38			(668	)		(79	)
Precision Motion		5,803			4,086			9,940			6,729
Unallocated Corporate and Shared Services		(5,520	)		(4,491	)		(12,001	)		(10,073	)
Total	$	10,315		$	6,480		$	15,712		$	10,548

	Three Months Ended				Six Months Ended
	July 3, 2015		June 27, 2014		July 3, 2015		June 27, 2014
Depreciation and Amortization
Laser Products	$	1,397	$	1,554	$	2,979	$	3,220
Vision Technologies		2,082		3,716		4,340		5,807
Precision Motion		689		505		1,162		1,007
Unallocated Corporate and Shared Services		455		547		904		1,117
Total	$	4,623	$	6,322	$	9,385	$	11,151