BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 29, 2013

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

NOTE 14 BUSINESS SEGMENT INFORMATION

The operating segments reported below are the segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Chief Executive Officer, who is the chief operating decision maker, in deciding how to allocate resources and in assessing performance.  Prior to 2013, the Company developed, manufactured and marketed its products within three distinct business segments: its Lasers Division, its Photonics and Precision Technologies Division and its Ophir Division.  In January 2013, the Company reorganized its operations to create three new operating segments: its Photonics Group, its Lasers Group and its Optics Group.  As a result, the Company has revised its reportable segments to correspond with its new operating segments, reflecting the manner in which it now assesses performance and allocates resources.  The results of operations of the Company’s reportable segments for the three and six months ended June 30, 2012 reported below have been restated to conform to the new reportable segments.

The Company measured income reported for each business segment, which included only those costs that were directly attributable to the operations of that segment, and excluded certain unallocated operating expenses, such as corporate overhead and intangible asset amortization, certain gains, interest and other expense, net, and income taxes.

(In thousands)	Photonics		Lasers		Optics		Total
Three months ended June 29, 2013:
Sales to external customers	$	55,449	$	39,423	$	39,362	$	134,234
Segment income	$	10,767	$	4,225	$	1,875	$	16,867
Three months ended June 30, 2012:
Sales to external customers	$	60,497	$	44,734	$	48,424	$	153,655
Segment income	$	13,488	$	2,905	$	7,449	$	23,842
Six months ended June 29, 2013:
Sales to external customers	$	113,816	$	78,308	$	74,717	$	266,841
Segment income	$	23,333	$	7,358	$	2,575	$	33,266
Six months ended June 30, 2012:
Sales to external customers	$	120,629	$	93,961	$	96,232	$	310,822
Segment income	$	25,768	$	9,588	$	13,638	$	48,994

The following table reconciles segment income to consolidated income before income taxes:

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
(In thousands)	2013		2012		2013		2012
Segment income	$	16,867	$	23,842	$	33,266	$	48,994
Unallocated operating expenses	(11,274)		(12,497)		(23,250)		(27,439)
Gain on sale of assets	-		5,298		-		5,298
Interest and other expense, net	(2,042)		(2,828)		(4,179)		(5,015)
	$	3,551	$	13,815	$	5,837	$	21,838