15. 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.

The Company operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities are described below.

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including CO2 lasers, continuous wave and femtosecond lasers, optical light engines, and laser scanning and laser 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, DNA sequencing, 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

The Vision segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; surgical displays and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal printers; spectrometry technologies, and embedded touch screen solutions. 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 to OEM customers. 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
	September 29,		September 30,		September 29,		September 30,
	2017		2016		2017		2016
Revenue
Photonics	$	61,882	$	43,425	$	170,503	$	129,907
Vision		58,150		31,601		124,943		88,768
Precision Motion		26,264		22,803		78,926		67,204
Total	$	146,296	$	97,829	$	374,372	$	285,879

	Three Months Ended						Nine Months Ended
	September 29,			September 30,			September 29,			September 30,
	2017			2016			2017			2016
Gross Profit
Photonics	$	28,966		$	18,603		$	77,423		$	57,461
Vision		19,792			12,343			47,378			32,446
Precision Motion		10,291			10,592			34,558			30,757
Unallocated Corporate and Shared Services		(342	)		(326	)		(1,069	)		(1,064	)
Total	$	58,707		$	41,212		$	158,290		$	119,600

	Three Months Ended						Nine Months Ended
	September 29,			September 30,			September 29,			September 30,
	2017			2016			2017			2016
Gross Profit Margin
Photonics		46.8	%		42.8	%		45.4	%		44.2	%
Vision		34.0	%		39.1	%		37.9	%		36.6	%
Precision Motion		39.2	%		46.5	%		43.8	%		45.8	%
Total		40.1	%		42.1	%		42.3	%		41.8	%

	Three Months Ended						Nine Months Ended
	September 29,			September 30,			September 29,			September 30,
	2017			2016			2017			2016
Operating Income (Loss) from Continuing Operations
Photonics	$	15,233		$	8,185		$	35,746		$	24,704
Vision		846			2,307			4,893			(4,164	)
Precision Motion		5,493			6,195			20,238			16,608
Unallocated Corporate and Shared Services		(9,299	)		(5,639	)		(22,776	)		(15,915	)
Total	$	12,273		$	11,048		$	38,101		$	21,233

	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2017		2016		2017		2016
Depreciation and Amortization
Photonics	$	3,666	$	1,820	$	10,693	$	5,123
Vision		4,362		2,460		9,276		7,861
Precision Motion		588		603		1,746		1,845
Unallocated Corporate and Shared Services		248		281		725		1,104
Total	$	8,864	$	5,164	$	22,440	$	15,933