Segment Information

6 Months Ended

Jul. 01, 2016

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 and adjacency of technologies, applications and customers amongst the Company’s individual product lines.

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

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, metrology, medical and life science imaging, and medical 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, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions, 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 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 1, 2016		July 3, 2015		July 1, 2016		July 3, 2015
Revenue
Laser Products	$	46,124	$	42,190	$	86,482	$	87,145
Vision Technologies		28,305		31,216		57,167		62,327
Precision Motion		23,305		23,088		44,401		41,636
Total	$	97,734	$	96,494	$	188,050	$	191,108

	Three Months Ended						Six Months Ended
	July 1, 2016			July 3, 2015			July 1, 2016			July 3, 2015
Gross Profit
Laser Products	$	20,861		$	18,950		$	38,858		$	38,325
Vision Technologies		10,524			12,158			20,103			24,671
Precision Motion		10,497			10,611			20,165			19,076
Unallocated Corporate and Shared Services		(386	)		(374	)		(738	)		(721	)
Total	$	41,496		$	41,345		$	78,388		$	81,351

	Three Months Ended						Six Months Ended
	July 1, 2016			July 3, 2015			July 1, 2016			July 3, 2015
Gross Profit Margin
Laser Products		45.2	%		44.9	%		44.9	%		44.0	%
Vision Technologies		37.2	%		38.9	%		35.2	%		39.6	%
Precision Motion		45.0	%		46.0	%		45.4	%		45.8	%
Total		42.5	%		42.8	%		41.7	%		42.6	%

	Three Months Ended						Six Months Ended
	July 1, 2016			July 3, 2015			July 1, 2016			July 3, 2015
Operating Income (Loss) from Continuing Operations
Laser Products	$	9,663		$	10,046		$	16,519		$	18,441
Vision Technologies		(2,700	)		(14	)		(6,471	)		(668	)
Precision Motion		5,178			5,803			10,413			9,940
Unallocated Corporate and Shared Services		(4,543	)		(5,520	)		(10,276	)		(12,001	)
Total	$	7,598		$	10,315		$	10,185		$	15,712

	Three Months Ended				Six Months Ended
	July 1, 2016		July 3, 2015		July 1, 2016		July 3, 2015
Depreciation and Amortization
Laser Products	$	1,759	$	1,397	$	3,303	$	2,979
Vision Technologies		2,301		2,082		5,401		4,340
Precision Motion		628		689		1,242		1,162
Unallocated Corporate and Shared Services		250		455		823		904
Total	$	4,938	$	4,623	$	10,769	$	9,385