Segment Information

3 Months Ended

Apr. 03, 2015

Segment Reporting [Abstract]

Segment Information

14. Segment Information

The Company evaluates the performance of, and allocates resources to, its segments based on sales, gross profit and operating profit. The Company reports assets on a consolidated basis to the chief operating decision maker, which is the Chief Executive Officer. The Company’s reportable segments have been identified based on commonality of end markets, customers, applications and technologies amongst the Company’s individual product lines, which is consistent with the Company’s operating structure, associated management structure, and management compensation programs.

We operate in three reportable segments: Laser Products, Medical Technologies, and Precision Motion. The reportable segments and their principal activities consist of the following:

Laser Products

The Laser Products segment designs, manufactures and markets photonics-based solutions to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, and medical and life science imaging and laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Medical Technologies

The Medical Technologies segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, thermal printers, and light and color measurement instrumentation to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Precision Motion

The Precision Motion segment designs, manufactures and markets optical encoders, precision motor and motion control technology, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold into the industrial and, to a lesser extent, the medical markets. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Reportable Segment Financial Information

Sales, gross profit, gross profit margin, operating income (loss) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands):

	Three Months Ended
	April 3, 2015		March 28, 2014
Sales
Laser Products	$	44,955	$	41,860
Medical Technologies		31,111		22,367
Precision Motion		18,548		14,906
Total	$	94,614	$	79,133

	Three Months Ended
	April 3, 2015			March 28, 2014
Gross Profit
Laser Products	$	19,375		$	17,013
Medical Technologies		12,513			8,889
Precision Motion		8,465			6,416
Corporate, Shared Services and Unallocated		(347	)		(213	)
Total	$	40,006		$	32,105

	Three Months Ended
	April 3, 2015			March 28, 2014
Gross Profit Margin
Laser Products		43.1	%		40.6	%
Medical Technologies		40.2	%		39.7	%
Precision Motion		45.6	%		43.0	%
Total		42.3	%		40.6	%

	Three Months Ended
	April 3, 2015			March 28, 2014
Operating Income (Loss) from Continuing Operations
Laser Products	$	8,395		$	7,124
Medical Technologies		(654	)		(117	)
Precision Motion		4,137			2,643
Corporate, Shared Services and Unallocated		(6,481	)		(5,582	)
Total	$	5,397		$	4,068

	Three Months Ended
	April 3, 2015		March 28, 2014
Depreciation and Amortization
Laser Products	$	1,582	$	1,666
Medical Technologies		2,258		2,091
Precision Motion		473		502
Corporate, Shared Services and Unallocated		449		570
Total	$	4,762	$	4,829