Segment and Geographic Information

12 Months Ended

Dec. 31, 2019

Prior to the acquisition of Nutronics in the fourth quarter of 2019, the Company operated as one reportable segment. With the addition of Nutronics, the Company currently operates in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. Revenue in the Laser Products Segment includes products that we sell such as fiber lasers, diodes, complete laser systems and components; whereas the Advanced Development Segment revenue is largely based on research and development grants that do not result in the delivery of a standard product.

The Company's chief operating decision‑maker ("CODM") is the chief executive officer, who reviews operating results to make decisions about allocating resources and assessing performance on a total company basis. The following table summarizes the operating results by reportable segment for 2019 (dollars in thousands):



	Laser Products			Advanced Development			Corporate and Other			Totals
Revenue	$	174,059		$	2,560		$	—		$	176,619
Gross profit	$	53,247		$	293		$	(1,201	)	$	52,339
Gross margin	30.6		%	11.4		%	NM			29.6		%
Operating income (loss)	$	(768	)	$	186		$	(9,326	)	$	(9,909	)

Corporate and Other includes unallocated expenses related to amortization of purchased intangible assets, share-based compensation expense, and acquisition-related costs, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Acquisition-related costs include transaction costs and any costs directly related to the acquisition and integration of acquired businesses. Since the Company operated only in the Laser Products segment prior to the acquisition of Nutronics in 2019, no comparative information is presented for 2018 or 2017.

The geographic locations of the Company’s long‑lived assets, net, based on location of the assets, are as follows (in thousands):



	As of December 31,
	2019		2018
North America	$	39,257	$	18,505
China	9,797		11,533
Rest of World	2,319		1,471
	$	51,373	$	31,509