Segment Information

6 Months Ended

Jun. 29, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems that are used to control the manufacture of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, paper, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense.

The following table summarizes information about the segments (in thousands):

Three-months Ended    June 29, 2014	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	90,069	$	12,873	$	—		$	102,942
Service revenue	2,207		3,653		—			5,860
Operating income	34,184		4,571		(8,033		)	30,722
Six-months Ended    June 29, 2014	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	167,687	$	18,824	$	—		$	186,511
Service revenue	5,905		7,315		—			13,220
Operating income	62,476		5,584		(14,895		)	53,165

Three-months Ended    June 30, 2013	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	72,012	$	7,686	$	—		$	79,698
Service revenue	2,301		4,511		—			6,812
Operating income	23,527		2,227		(5,581		)	20,173
Six-months Ended    June 30, 2013	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	140,331	$	14,039	$	—		$	154,370
Service revenue	4,393		8,639		—			13,032
Operating income	45,603		3,959		(11,408		)	38,154

Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world.