Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We have three reportable segments: 3D Manufacturing, Construction BIM, and Emerging Verticals. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reportable segments are aggregated in the Emerging Verticals segment.

We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems in each of these reportable segments. These activities represent more than 99% of consolidated sales.

Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reportable segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly-titled measures reported by other companies.

Our segment structure presented below represents a change from the prior year as further described in Note 1 – Description of Business. The amounts for the three months ended March 31, 2018 have been restated to reflect the change in our reporting segments. Each of our reporting segments continues to employ consistent accounting policies.

The following tables present information about our reportable segments, including a reconciliation of segment profit to income from operations included in the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018:

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Three Months Ended March 31, 2019
Total sales	$	56,567	$	25,440	$	11,610	$	93,617
Segment profit	$	19,170	$	8,427	$	669	$	28,266
General and administrative							13,224
Depreciation and amortization							4,749
Research and development							9,935
Income from operations							$	358

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Three Months Ended March 31, 2018
Total sales	$	60,657	$	22,682	$	9,495	$	92,834
Segment profit	$	18,425	$	6,451	$	639	$	25,515
General and administrative							11,073
Depreciation and amortization							4,343
Research and development							9,406
Income from operations							$	693