Segment Information

6 Months Ended

Jul. 03, 2011

Segment Information [Abstract]

Segment Information

NOTE 15:   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, papers, non-wovens, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that senior 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					Reconciling
July 3, 2011	MVSD		SISD		Items		Consolidated
Product revenue	$	70,942	$	6,624	$	-	$	77,566
Service revenue		1,834		3,993		-		5,827
Operating income		26,587		2,022		(4,567)		24,042

Six-months Ended					Reconciling
July 3, 2011	MVSD		SISD		Items		Consolidated
Product revenue	$	133,759	$	12,684	$	-	$	146,443
Service revenue		3,803		7,541		-		11,344
Operating income		48,614		3,019		(10,223)		41,410

Three-months Ended					Reconciling
July 4, 2010	MVSD		SISD		Items		Consolidated
Product revenue	$	59,345	$	7,722	$	-	$	67,067
Service revenue		1,653		3,091		-		4,744
Operating income		22,939		1,330		(5,028)		19,241

Six-months Ended					Reconciling
July 4, 2010	MVSD		SISD		Items		Consolidated
Product revenue	$	109,005	$	12,675	$	-	$	121,680
Service revenue		3,150		5,948		-		9,098
Operating income		38,384		1,002		(8,893)		30,493

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 divisions share assets and resources in a number of locations around the world.