Segment Reporting

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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 and six months ended June 30, 2019 and 2018:

	3D Manufacturing		Construction BIM		Emerging Verticals			Total
Three Months Ended June 30, 2019
Total sales	$	59,002	$	24,161	$	10,328		$	93,491
Segment profit (loss)	$	17,819	$	6,574	$	(1,198	)	$	23,195
General and administrative								14,424
Depreciation and amortization								4,573
Research and development								9,091
Loss from operations								$	(4,893	)

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Three Months Ended June 30, 2018
Total sales	$	63,989	$	23,567	$	10,688	$	98,244
Segment profit	$	20,898	$	5,865	$	844	$	27,607
General and administrative							11,320
Depreciation and amortization							4,377
Research and development							9,983
Income from operations							$	1,927

	3D Manufacturing		Construction BIM		Emerging Verticals			Total
Six Months Ended June 30, 2019
Total sales	$	115,569	$	49,600	$	21,939		$	187,108
Segment profit (loss)	$	36,989	$	15,000	$	(528	)	$	51,461
General and administrative								27,648
Depreciation and amortization								9,322
Research and development								19,026
Loss from operations								$	(4,535	)

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Six Months Ended June 30, 2018
Total sales	$	124,646	$	46,249	$	20,183	$	191,078
Segment profit	$	39,322	$	12,316	$	1,484	$	53,122
General and administrative							22,393
Depreciation and amortization							8,720
Research and development							19,389
Income from operations							$	2,620