14. 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						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net Sales to External Customers:
North America	$	67,066		$	71,240		$	131,653		$	130,696
Asia		39,324			45,914			76,601			84,535
Europe		21,026			23,556			44,551			43,730
	$	127,416		$	140,710		$	252,805		$	258,961

Net Sales:
North America	$	69,450		$	74,602		$	136,923		$	137,173
Asia		63,062			70,005			125,372			126,144
Europe		25,734			27,630			52,598			51,942
Less intercompany net sales		(30,830	)		(31,527	)		(62,088	)		(56,298	)
	$	127,416		$	140,710		$	252,805		$	258,961

Income from Operations:
North America	$	2,373		$	2,963		$	1,880		$	2,661
Asia		270			5,319			1,283			5,234
Europe		2,310			2,385			4,604			3,209
	$	4,953		$	10,667		$	7,767		$	11,104

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