Segment and Geographic Information (Notes)

6 Months Ended

Oct. 01, 2016

Segment and Geographic Information [Abstract]

Segment Reporting Disclosure [Text Block]

Segment and Geographic Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The chief operating decision maker ("CODM") is the Company's Chief Executive Officer. The Company operates in two segments, Component Processing and Micromachining. Included within Component Processing are interconnect products, semiconductor products and component test products. The interconnect, semiconductor and component test products are sold primarily to manufacturers of electronic components and are used to drill, cut, trim, ablate, test and mark features that improve the yield or functionality of the component. Micromachining products are sold primarily to manufacturers of end devices across multiple industries and are used primarily to drill, cut or mark features on a variety of materials, generally on the casing or external surface of the end device. In addition, micromachining products tend to serve markets that require fewer features, less stringent design requirements, and lower cost. Products acquired in the Visicon acquisition are included in the Micromachining segment due to the complementary nature of the sale process and customer base. The Company uses U.S. GAAP for segment reporting, consistent with the accounting policies of the consolidated entity.

Segment disclosures are presented to the gross profit level as this is the primary performance measure for which the segment management are responsible. Corporate and other charges include amortization of acquired intangible assets, stock-based compensation, restructuring and other costs. Selling, general and administrative and other operating expenses are managed at the functional and corporate levels, and because allocation to the market segments would be arbitrary, have not been allocated to the market segments. See the consolidated statements of operations for reconciliations from gross profit to income before taxes. These reconciling items are not included in the measure of profit and loss for each reportable segment.

In the quarter ended July 2, 2016, we revised the method we use to determine segment gross margin amounts used by the CODM. Previously the profit on the laser (or more specifically, the difference between an estimated third-party purchase price of a similar laser and the cost for the Company to produce these lasers) was associated with only a single segment where the internal lasers were primarily employed or expected to be employed. However, with recent introduction of new products, certain of the Company's internal lasers are now used in both the Component Processing and Micromachining segments. The change in method was made to refine the allocation of profit to the segments given this new dynamic, and to ensure that the margin associated with the use of internal lasers is reflected in the profit of the segment generating the third-party sale. No revisions to segment gross margins were made retrospectively as the changes were deemed immaterial.

Net sales by segment were as follows:

	Fiscal quarter ended				Two fiscal quarters ended
(In thousands)	October 1, 2016		September 26, 2015		October 1, 2016		September 26, 2015
Component Processing	$	25,739	$	32,754	$	68,868	$	71,038
Micromachining	3,919		13,718		8,458		18,525
	$	29,658	$	46,472	$	77,326	$	89,563

Gross profits by segment were as follows:

	Fiscal quarter ended						Two fiscal quarters ended
(In thousands)	October 1, 2016			September 26, 2015			October 1, 2016			September 26, 2015
Component Processing	$	11,512		$	13,387		$	33,770		$	27,497
Micromachining	(168		)	5,473			(153		)	7,135
Corporate and other	(364		)	(439		)	(1,829		)	(834		)
	$	10,980		$	18,421		$	31,788		$	33,798

Net sales by geographic area, based on the location of the end user, were as follows:

	Fiscal quarter ended				Two fiscal quarters ended
(In thousands)	October 1, 2016		September 26, 2015		October 1, 2016		September 26, 2015
Asia	$	25,721	$	37,029	$	66,169	$	70,565
Americas	2,236		6,805		5,254		13,161
Europe	1,701		2,638		5,903		5,837
	$	29,658	$	46,472	$	77,326	$	89,563