13. SEGMENTS

The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are net sales and income from operations. The following is a summary of key financial data:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Net Sales to External Customers:
North America	$	70,654		$	59,537		$	201,351		$	184,873
Asia		53,528			45,919			138,062			127,801
Europe		22,307			20,930			66,038			58,997
	$	146,489		$	126,386		$	405,451		$	371,671

Net Sales:
North America	$	73,932		$	62,348		$	211,105		$	193,473
Asia		78,008			66,534			204,152			193,364
Europe		25,398			23,633			77,341			67,434
Less intercompany net sales		(30,849	)		(26,129	)		(87,147	)		(82,600	)
	$	146,489		$	126,386		$	405,451		$	371,671

Income from Operations:
North America	$	3,360		$	366		$	6,021		$	2,566
Asia		5,753			5,408			10,987			11,759
Europe		1,386			1,020			4,595			2,090
	$	10,499		$	6,794		$	21,603		$	16,415

Net Sales – Segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Intercompany sales include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States which are sold to Asia for further processing.

Income from operations represents net sales less operating costs and expenses and does not include any amounts related to intercompany transactions.