Segment Information

9 Months Ended

Sep. 27, 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				Nine Months Ended
	September 27,		September 29,		September 27,		September 29,
Revenue	2024		2023		2024		2023
Precision Medicine and Manufacturing	$	60,595	$	71,277	$	189,781	$	215,138
Medical Solutions		103,783		83,378		310,760		244,340
Robotics and Automation		80,027		66,848		210,644		210,615
Total	$	244,405	$	221,503	$	711,185	$	670,093

	Three Months Ended						Nine Months Ended
	September 27,			September 29,			September 27,			September 29,
Gross Profit	2024			2023			2024			2023
Precision Medicine and Manufacturing	$	27,048		$	36,208		$	89,412		$	107,054
Medical Solutions		42,373			34,027			122,128			100,170
Robotics and Automation		40,569			32,652			104,506			100,376
Unallocated Corporate and Shared Services		(775	)		(1,296	)		(2,726	)		(4,258	)
Total	$	109,215		$	101,591		$	313,320		$	303,342

	Three Months Ended						Nine Months Ended
	September 27,			September 29,			September 27,			September 29,
Gross Profit Margin	2024			2023			2024			2023
Precision Medicine and Manufacturing		44.6	%		50.8	%		47.1	%		49.8	%
Medical Solutions		40.8	%		40.8	%		39.3	%		41.0	%
Robotics and Automation		50.7	%		48.8	%		49.6	%		47.7	%
Total		44.7	%		45.9	%		44.1	%		45.3	%

	Three Months Ended						Nine Months Ended
	September 27,			September 29,			September 27,			September 29,
Operating Income (Loss)	2024			2023			2024			2023
Precision Medicine and Manufacturing	$	11,879		$	18,508		$	40,367		$	54,803
Medical Solutions		12,421			11,050			36,686			30,974
Robotics and Automation		22,086			12,208			48,950			39,456
Unallocated Corporate and Shared Services		(13,831	)		(11,457	)		(42,126	)		(36,414	)
Total	$	32,555		$	30,309		$	83,877		$	88,819

	Three Months Ended				Nine Months Ended
	September 27,		September 29,		September 27,		September 29,
Depreciation and Amortization Expenses	2024		2023		2024		2023
Precision Medicine and Manufacturing	$	2,806	$	2,644	$	7,621	$	7,901
Medical Solutions		6,891		3,860		20,216		11,877
Robotics and Automation		4,015		4,705		12,010		14,467
Unallocated Corporate and Shared Services		443		188		1,353		820
Total	$	14,155	$	11,397	$	41,200	$	35,065

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				Nine Months Ended
	September 27,		September 29,		September 27,		September 29,
	2024		2023		2024		2023
United States	$	124,328	$	110,462	$	364,800	$	321,898
Germany		33,559		33,263		98,659		100,222
Rest of Europe		30,584		34,257		94,083		98,159
China		24,623		15,679		60,708		54,331
Rest of Asia-Pacific		27,147		24,060		79,737		79,561
Other		4,164		3,782		13,198		15,922
Total	$	244,405	$	221,503	$	711,185	$	670,093

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						Nine Months Ended
	September 27,			September 29,			September 27,			September 29,
	2024			2023			2024			2023
Medical		54	%		57	%		56	%		54	%
Advanced Industrial		46	%		43	%		44	%		46	%
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.