Segment Information

3 Months Ended

Apr. 01, 2022

Segment Reporting [Abstract]

Segment Information

15. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. 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 determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of technologies offered to customers.

Based upon the information provided to the CODM, the Company has determined that it operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities consist of the following:

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures, particularly ophthalmology applications. 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; visualization solutions; wireless technologies, video recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal chart recorders; 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 and inductive encoders, precision motor, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles 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), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data):

	Three Months Ended
	April 1,		April 2,
Revenue	2022		2021
Photonics	$	62,782	$	58,493
Vision		62,050		67,636
Precision Motion		79,384		36,455
Total	$	204,216	$	162,584

	Three Months Ended
	April 1,			April 2,
Gross Profit	2022			2021
Photonics	$	28,387		$	28,109
Vision		25,230			26,926
Precision Motion		38,150			16,077
Unallocated Corporate and Shared Services		(1,491	)		(2,372	)
Total	$	90,276		$	68,740

	Three Months Ended
	April 1,			April 2,
Gross Profit Margin	2022			2021
Photonics		45.2	%		48.1	%
Vision		40.7	%		39.8	%
Precision Motion		48.1	%		44.1	%
Total		44.2	%		42.3	%

	Three Months Ended
	April 1,			April 2,
Operating Income (Loss)	2022			2021
Photonics	$	13,435		$	12,395
Vision		5,042			3,366
Precision Motion		18,338			7,446
Unallocated Corporate and Shared Services		(12,532	)		(12,108	)
Total	$	24,283		$	11,099

	Three Months Ended
	April 1,		April 2,
Depreciation and Amortization Expenses	2022		2021
Photonics	$	2,777	$	2,898
Vision		4,427		5,275
Precision Motion		6,737		1,607
Unallocated Corporate and Shared Services		103		69
Total	$	14,044	$	9,849

Revenue by Geography

The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands):

	Three Months Ended
	April 1,		April 2,
	2022		2021
United States	$	82,715	$	59,230
Germany		31,778		22,363
Rest of Europe		33,373		35,575
China		26,799		22,551
Rest of Asia-Pacific		22,840		20,747
Other		6,711		2,118
Total	$	204,216	$	162,584

The majority of revenue from Photonics, Vision and Precision Motion segments is generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue.

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

	Three Months Ended
	April 1,			April 2,
	2022			2021
Medical		47	%		55	%
Advanced Industrial		53	%		45	%
Total		100	%		100	%

The majority of revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Vision segment is generated from sales to customers in the medical market.