Segment Information

3 Months Ended

Mar. 31, 2013

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 and ID products that are used to automate the manufacture and tracking of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing or distribution 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 following table summarizes information about the segments (in thousands):

Quarter Ended March 31, 2013	MVSD		SISD		Reconciling Items			Consolidated
Product revenue	$	68,319	$	6,353	$	—		$	74,672
Service revenue		2,092		4,128		—			6,220
Operating income		22,076		1,732		(5,827	)		17,981
Quarter Ended April 1, 2012
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

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.