Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

15. Segment Information

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 operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities consist of the following:

Photonics

The Photonics segment designs, manufactures and markets photonics-based solutions, including CO2 lasers, continuous wave and femtosecond lasers, optical light engines, and laser scanning and laser beam delivery products, to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. The vast majority of the segment’s product offerings are sold to Original Equipment Manufacturers (“OEMs”) customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors.

Vision

The Vision segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions, 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 to OEM customers. The segment sells these products both 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) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands):

	Three Months Ended
	March 31,		April 1,
	2017		2016
Revenue
Photonics	$	50,736	$	40,358
Vision		32,762		28,862
Precision Motion		25,476		21,096
Total	$	108,974	$	90,316

	Three Months Ended
	March 31,			April 1,
	2017			2016
Gross Profit
Photonics	$	21,789		$	17,997
Vision		13,146			9,579
Precision Motion		11,518			9,668
Unallocated Corporate and Shared Services		(359	)		(352	)
Total	$	46,094		$	36,892

	Three Months Ended
	March 31,			April 1,
	2017			2016
Gross Profit Margin
Photonics		42.9	%		44.6	%
Vision		40.1	%		33.2	%
Precision Motion		45.2	%		45.8	%
Total		42.3	%		40.8	%

	Three Months Ended
	March 31,			April 1,
	2017			2016
Operating Income (Loss) from Continuing Operations
Photonics	$	8,080		$	6,856
Vision		1,525			(3,771	)
Precision Motion		7,164			5,235
Unallocated Corporate and Shared Services		(6,557	)		(5,733	)
Total	$	10,212		$	2,587

	Three Months Ended
	March 31,		April 1,
	2017		2016
Depreciation and Amortization
Photonics	$	3,244	$	1,544
Vision		2,437		3,100
Precision Motion		566		614
Unallocated Corporate and Shared Services		235		573
Total	$	6,482	$	5,831