Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We have three reportable segments: 3D Manufacturing, Construction BIM, and Emerging Verticals. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reportable segments are aggregated in the Emerging Verticals segment. Each of our reporting segments employs consistent accounting policies.

We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems in each of these reportable segments. These activities represent more than 99% of consolidated sales.

Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reportable segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly titled measures reported by other companies.

In the fourth quarter of 2018, we renamed our 3D Factory vertical and reporting segment “3D Manufacturing.” Additionally, commencing with the third quarter of 2019, depreciation and amortization expenses are being reported in the accompanying statements of operations to reflect departmental costs. Previously, those expenses were reported as a separate line item under operating expenses. Amounts related to depreciation and amortization expenses for the three and nine months ended September 30, 2018 have been restated throughout this Quarterly Report on Form 10-Q to reflect this reclassification of depreciation and amortization expenses and to conform to the current period presentation.

The following tables present information about our reportable segments, including a reconciliation of segment profit to loss from operations included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018:

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Three Months Ended September 30, 2019
Total sales	$	56,017	$	23,884	$	10,615	$	90,516
Segment profit	$	13,660	$	6,720	$	174	$	20,554
General and administrative							15,662
Research and development							10,783
Loss from operations							$	(5,891)

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Three Months Ended September 30, 2018
Total sales	$	64,182	$	23,710	$	11,813	$	99,705
Segment profit	$	15,190	$	6,106	$	834	$	22,130
General and administrative							13,102
Research and development							11,740
Loss from operations							$	(2,712)

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Nine Months Ended September 30, 2019
Total sales	$	171,586	$	73,485	$	32,553	$	277,624
Segment profit (loss)	$	48,004	$	20,113	$	(1,024)	$	67,093
General and administrative							44,471
Research and development							33,048
Loss from operations							$	(10,426)

	3D Manufacturing		Construction BIM		Emerging Verticals		Total
Nine Months Ended September 30, 2018
Total sales	$	190,584	$	69,994	$	30,205	$	290,783
Segment profit	$	52,489	$	16,999	$	1,347	$	70,835
General and administrative							36,789
Research and development							34,138
Loss from operations							$	(92)