BUSINESS SEGMENTS

Our business is organized into two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a global leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints.

Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

Segment information is as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Net sales
DynaEnergetics	$	88,628	$	58,899	$	168,464	$	108,020
NobelClad	22,326		22,016		42,625		40,208
Net sales	$	110,954	$	80,915	$	211,089	$	148,228



	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Operating income
DynaEnergetics	$	26,813		$	12,228		$	49,923		$	20,948
NobelClad	1,923			1,703			$	3,753		$	1,691
Segment operating income	28,736			13,931			53,676			22,639

Unallocated corporate expenses	(2,588		)	(2,618		)	(5,905		)	(5,306		)
Stock-based compensation	(1,495		)	(1,084		)	(2,666		)	(1,792		)
Other income (expense), net	343			(327		)	322			(704		)
Interest expense, net	(409		)	(136		)	(782		)	(601		)
Income before income taxes	$	24,587		$	9,766		$	44,645		$	14,236



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Depreciation and amortization
DynaEnergetics	$	1,719	$	1,575	$	3,118	$	3,134
NobelClad	835		817		1,632		1,633
Segment depreciation and amortization	$	2,554	$	2,392	$	4,750	$	4,767

The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows.

DynaEnergetics



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
United States	$	75,323	$	44,164	143,281		80,294
Canada	2,919		8,556		6,376		14,341
United Arab Emirates	1,594		365		4,098		888
France	1		21		41		73
Ukraine	1,678		1,109		3,410		1,513
Germany	25		53		80		81
Russia	570		1,144		1,055		2,426
India	47		195		77		829
Egypt	872		534		1,734		1,076
Indonesia	941		164		1,180		184
Iraq	690		245		886		319
China	—		—		29		56
Italy	—		21		18		31
Hong Kong	61		302		61		302
Rest of the world	3,907		2,026		6,138		5,607
Total DynaEnergetics	$	88,628	$	58,899	$	168,464	$	108,020

NobelClad



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
United States	$	12,304	$	6,775	21,947		12,481
Canada	1,335		1,631		3,359		3,424
United Arab Emirates	289		259		1,273		390
France	896		1,744		1,653		2,695
South Korea	413		828		881		1,831
Germany	828		640		1,831		2,253
India	155		33		279		803
Spain	285		464		346		632
Italy	142		872		664		1,077
Australia	397		—		845		—
China	—		4,386		—		7,844
Netherlands	378		821		1,012		1,312
Norway	1,538		44		2,160		287
Sweden	836		440		1,137		578
South Africa	273		30		1,006		193
Rest of the world	2,257		3,049		4,232		4,408
Total NobelClad	$	22,326	$	22,016	$	42,625	$	40,208

During the three months ended June 30, 2019 and 2018, one customer in our DynaEnergetics segment accounted for greater than 10% of consolidated net sales. During the six months ended June 30, 2019, one customer in DynaEnergetics was responsible for more than 10% of consolidated net sales. During the six months ended June 30, 2018, no customer was responsible for more than 10% of consolidated net sales.