Note 13 - Segment Reporting

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 13 – Segment Reporting

The Company’s reportable segments are based on the internal reporting used by the Company’s Chief Executive Officer, who is the chief operating decision maker (CODM), to assess operating performance and make decisions about the allocation of resources. The Corporate Unallocated and Japan category includes non-reportable segments, as well as research and development and general and administrative costs, that the Company does not allocate directly to its operating segments.

Intercompany transactions primarily relate to intercontinental activity and have been eliminated and are excluded from the reported amounts. The difference between income from operations and pre-tax income relates to foreign currency-related gains and losses and interest income on cash balances and investments, which are not allocated to business segments. 

Revenue and income from operations by reportable segment for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Revenue:
United States	$	98,970	$	100,127	$	295,121	$	286,524
Europe		21,464		22,155		69,441		68,259
Japan		1,287		3,060		8,229		9,733
Total revenue	$	121,721	$	125,342	$	372,791	$	364,516

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2022			2021			2022			2021
Income (Loss) from Operations:
United States	$	25,293		$	23,475		$	73,984		$	72,258
Europe		(3,581	)		(2,223	)		(7,509	)		1,469
Corporate Unallocated and Japan		(15,654	)		(14,325	)		(47,326	)		(46,435	)
Total Income from Operations	$	6,058		$	6,927		$	19,149		$	27,292

Total long-lived assets at  September 30, 2022 and December 31, 2021 were as follows:

	September 30,		December 31,
(in thousands)	2022		2021
Total long-lived assets:
United States	$	206,965	$	215,701
Europe		51,636		59,388
Japan		1,255		5,257
Total Long-lived Assets	$	259,856	$	280,346

The Company's decision to close the Japan business resulted in operating expenses of $1.2 million and $6.4 million during the three and nine months ended September 30, 2022, respectively. Operating expenses included $0.1 million of employee severance and $1.1 million related to the write-down of fixed assets for the three months ended September 30, 2022. Operating expenses included $2.3 million of employee severance, $2.3 million related to the write-down of fixed assets, $0.9 million of facility-related charges, $0.6 million in goodwill impairment charges and $0.3 million in other closure related charges for the nine months ended September 30, 2022. 

Revenue by product line for the three and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Revenue:
Injection Molding	$	48,940	$	57,685	$	155,693	$	172,212
CNC Machining		47,489		43,658		141,809		121,953
3D Printing		19,823		18,589		59,458		53,994
Sheet Metal		5,219		4,854		15,066		14,790
Other Revenue		250		556		765		1,567
Total revenue	$	121,721	$	125,342	$	372,791	$	364,516