Segment Information

9 Months Ended

Oct. 02, 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				Nine Months Ended
	October 2, 2015		September 26, 2014		October 2, 2015		September 26, 2014
Revenue
Laser Products	$	41,330	$	45,806	$	128,475	$	131,494
Vision Technologies		30,992		32,680		93,319		89,838
Precision Motion		19,949		16,170		61,585		49,362
Total	$	92,271	$	94,656	$	283,379	$	270,694

	Three Months Ended						Nine Months Ended
	October 2, 2015			September 26, 2014			October 2, 2015			September 26, 2014
Gross Profit
Laser Products	$	18,851		$	20,269		$	57,176		$	54,437
Vision Technologies		12,152			12,945			36,823			35,672
Precision Motion		9,233			6,776			28,309			21,141
Unallocated Corporate and Shared Services		(326	)		(307	)		(1,047	)		(811	)
Total	$	39,910		$	39,683		$	121,261		$	110,439

	Three Months Ended						Nine Months Ended
	October 2, 2015			September 26, 2014			October 2, 2015			September 26, 2014
Gross Profit Margin
Laser Products		45.6	%		44.2	%		44.5	%		41.4	%
Vision Technologies		39.2	%		39.6	%		39.5	%		39.7	%
Precision Motion		46.3	%		41.9	%		46.0	%		42.8	%
Total		43.3	%		41.9	%		42.8	%		40.8	%

	Three Months Ended						Nine Months Ended
	October 2, 2015			September 26, 2014			October 2, 2015			September 26, 2014
Operating Income (Loss) from Continuing Operations
Laser Products	$	10,145		$	9,857		$	28,586		$	23,828
Vision Technologies		(388	)		(1,115	)		(1,056	)		(1,194	)
Precision Motion		4,417			2,796			14,357			9,525
Unallocated Corporate and Shared Services		(5,167	)		(4,716	)		(17,168	)		(14,789	)
Total	$	9,007		$	6,822		$	24,719		$	17,370

	Three Months Ended				Nine Months Ended
	October 2, 2015		September 26, 2014		October 2, 2015		September 26, 2014
Depreciation and Amortization
Laser Products	$	1,394	$	1,618	$	4,373	$	4,838
Vision Technologies		2,109		3,745		6,449		9,552
Precision Motion		680		444		1,842		1,451
Unallocated Corporate and Shared Services		520		537		1,424		1,654
Total	$	4,703	$	6,344	$	14,088	$	17,495