Segment Information

3 Months Ended

Apr. 01, 2012

Segment Information [Abstract]

Segment Information

NOTE 14: 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, 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):

Quarter Ended April 1, 2012	MVSD			SISD			Reconciling Items				Consolidated
Product revenue		$	64,221		$	7,186		$	—			$	71,407
Service revenue			1,920			4,382			—				6,302
Operating income			21,144			2,392			(5,795	)			17,741
Quarter Ended April 3, 2011
Product revenue		$	62,817		$	6,060		$	—			$	68,877
Service revenue			1,969			3,548			—				5,517
Operating income			22,027			997			(5,656	)			17,368

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.