Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our executive leadership team is comprised of functional leaders in areas such as sales, marketing, operations, research and development, general and administrative and human resources. We report as one reporting segment that develops, manufactures, markets, supports and sells CAD-based quality assurance products integrated with CAD-based inspection, statistical process control software and 3D documentation systems. Our CEO, who is also our Chief Operating Decision Maker (“CODM”) assesses performance of our reporting segment and decides how to allocate resources based on consolidated net income (loss) that is also reported on the consolidated statement of operations as consolidated net income (loss). The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The CEO uses consolidated net income (loss) to evaluate income (loss) generated from segment assets in deciding whether to reinvest profits into the segment. We do not have separate business units or segment managers or vertical leaders who report to the CODM with respect to operations, operating results or planning for levels or components below the total Company level. Our reporting segment sells into a variety of end markets, including automotive, aerospace, metal and machine fabrication, architecture, engineering, construction and public safety. These activities represent more than 99% of consolidated sales.

Segment results for the three months ended March 31, 2025 and 2024 are as follows (in thousands):

	Three Months Ended March 31,
	2025		2024
Sales	$	82,863	$	84,244
Cost of sales	35,626		40,937
Gross profit	47,237		43,307
Segment expenses
Employee compensation	28,043		29,278
Stock compensation	3,353		4,209
Restructuring costs	120		—
Depreciation & amortization	2,222		1,894
Interest expense, net	888		831
Other (income) expense, net	467		25
Income tax expense	1,553		1,101
Facilities	1,866		1,972
Technology services and infrastructure	3,631		3,341
Travel	2,222		2,009
Other segment expenses (1)	1,966		5,914
Segment net income (loss)	906		(7,267)
Reconciliation of profit or loss
Adjustments and reconciling items	—		—
Consolidated net income (loss)	$	906	$	(7,267)

(1) Other segment expenses primarily consist of consulting and audit fees, trade show cost, marketing spend and legal fees.