Segment Information

6 Months Ended

Jun. 28, 2024

Segment Reporting [Abstract]

Segment Information

16. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) utilizes certain financial information to make decisions about allocating resources and assessing performance for the entire Company. The Company evaluates the performance of and allocates resources to its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product is impracticable due to the highly customized and extensive portfolio of technologies offered to customers.

Based upon the information provided to the CODM, the Company has determined that it operates in three reportable segments: Precision Medicine and Manufacturing, Medical Solutions, and Robotics and Automation. The reportable segments and their principal activities are described below.

Precision Medicine and Manufacturing

The Precision Medicine and Manufacturing segment designs, manufactures and markets photonics-based solutions, including laser scanning, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, medical and life science imaging, DNA sequencing, and medical laser procedures, particularly ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Medical Solutions

The Medical Solutions segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; visualization solutions; wireless technologies, video recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; embedded touch screen solutions; and high precision customized subsystems. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Robotics and Automation

The Robotics and Automation segment designs, manufactures and markets optical and inductive encoders, precision motors, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, and air bearing spindles to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data):

	Three Months Ended				Six Months Ended
	June 28,		June 30,		June 28,		June 30,
Revenue	2024		2023		2024		2023
Precision Medicine and Manufacturing	$	63,952	$	74,333	$	129,186	$	143,861
Medical Solutions		104,525		83,322		206,977		160,962
Robotics and Automation		67,387		71,809		130,617		143,767
Total	$	235,864	$	229,464	$	466,780	$	448,590

	Three Months Ended						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
Gross Profit	2024			2023			2024			2023
Precision Medicine and Manufacturing	$	30,580		$	36,513		$	62,364		$	70,846
Medical Solutions		40,364			34,257			79,755			66,143
Robotics and Automation		33,388			34,909			63,937			67,724
Unallocated Corporate and Shared Services		(643	)		(1,556	)		(1,951	)		(2,962	)
Total	$	103,689		$	104,123		$	204,105		$	201,751

	Three Months Ended						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
Gross Profit Margin	2024			2023			2024			2023
Precision Medicine and Manufacturing		47.8	%		49.1	%		48.3	%		49.2	%
Medical Solutions		38.6	%		41.1	%		38.5	%		41.1	%
Robotics and Automation		49.5	%		48.6	%		48.9	%		47.1	%
Total		44.0	%		45.4	%		43.7	%		45.0	%

	Three Months Ended						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
Operating Income (Loss)	2024			2023			2024			2023
Precision Medicine and Manufacturing	$	12,744		$	19,611		$	28,488		$	36,295
Medical Solutions		12,276			10,083			24,265			19,924
Robotics and Automation		14,648			15,248			26,864			27,248
Unallocated Corporate and Shared Services		(13,953	)		(12,744	)		(28,295	)		(24,957	)
Total	$	25,715		$	32,198		$	51,322		$	58,510

	Three Months Ended				Six Months Ended
	June 28,		June 30,		June 28,		June 30,
Depreciation and Amortization Expenses	2024		2023		2024		2023
Precision Medicine and Manufacturing	$	2,453	$	2,661	$	4,815	$	5,257
Medical Solutions		7,235		4,044		13,325		8,017
Robotics and Automation		3,994		4,917		7,995		9,762
Unallocated Corporate and Shared Services		434		315		910		632
Total	$	14,116	$	11,937	$	27,045	$	23,668

Revenue by Geography

The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 28,		June 30,		June 28,		June 30,
	2024		2023		2024		2023
United States	$	123,391	$	107,594	$	240,472	$	211,436
Germany		31,919		32,097		65,100		66,959
Rest of Europe		32,528		34,537		63,499		63,902
China		19,014		20,854		36,085		38,652
Rest of Asia-Pacific		25,334		27,390		52,590		55,501
Other		3,678		6,992		9,034		12,140
Total	$	235,864	$	229,464	$	466,780	$	448,590

The majority of revenue from Precision Medicine and Manufacturing, Medical Solutions and Robotics and Automation segments is generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue.

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

	Three Months Ended						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
	2024			2023			2024			2023
Medical		58	%		53	%		57	%		53	%
Advanced Industrial		42	%		47	%		43	%		47	%
Total		100	%		100	%		100	%		100	%

The majority of revenue from the Precision Medicine and Manufacturing and Robotics and Automation segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Medical Solutions segment is generated from sales to customers in the medical market.