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Segment Information
 3 Months Ended
Mar. 28, 2025
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

Reportable Segments

The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. The CODM evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating income. The Company’s reportable segments have been identified based on commonality and adjacency of end markets and customers amongst the Company’s individual product lines.

During the fourth quarter of 2024, the Company updated its organizational structure and re-aligned its financial reporting structure under two reportable segments: Automation Enabling Technologies and Medical Solutions. Prior to the reorganization, the Company's historical reportable segments were: Precision Medicine and Manufacturing, Robotics and Automation, and Medical Solutions. Prior period segment financial information has been recast to align with the new reportable segments herein, as well as in Notes 7 and 13.

Automation Enabling Technologies

The Automation Enabling Technologies segment designs, manufactures and markets laser beam delivery components, laser beam delivery solutions, CO2 lasers, solid state lasers, ultrafast lasers, optical and inductive encoders, precision motors, integrated stepper motors, servo drives, motion control solutions, intelligent robotic end-of-arm technology solutions, and air bearing spindles to customers worldwide. The segment serves highly demanding applications for advanced industrial processes, advanced industrial and medical robotics, other medical and life science automation applications, and medical laser procedures such as ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

Medical Solutions

The Medical Solutions segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators and endoscopic pumps and related disposables, laser beam delivery solutions, video processing and streaming and capture, machine vision technologies, radio-frequency identification (“RFID”) technologies, barcode identification technologies, thermal chart recorders, light and color measurement technologies, touch panel displays, and advanced motion control solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells the majority of these products directly, utilizing a highly technical sales force, and also sells some indirectly, through resellers and distributors.

Reportable Segment Financial Information

Results of operations, depreciation and amortization expenses by reportable segments for the periods indicated were as follows (in thousands):

 

Three Months Ended March 28, 2025

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

123,167

 

 

$

110,199

 

 

$

233,366

 

Cost of revenue

 

62,422

 

 

 

62,036

 

 

 

 

Amortization of purchased intangible assets

 

1,359

 

 

 

2,202

 

 

 

 

Segment gross profit

 

59,386

 

 

 

45,961

 

 

 

105,347

 

Research and development and engineering

 

9,439

 

 

 

13,955

 

 

 

 

Selling, general and administrative

 

19,159

 

 

 

14,732

 

 

 

 

Amortization of purchased intangible assets

 

2,408

 

 

 

3,146

 

 

 

 

Restructuring, acquisition, and related costs

 

(3,109

)

 

 

99

 

 

 

 

Segment operating income

 

31,489

 

 

 

14,029

 

 

 

45,518

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(13,097

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(5,644

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(359

)

Income before income taxes

$

31,489

 

 

$

14,029

 

 

$

26,418

 

 

 

Three Months Ended March 29, 2024

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

Revenue

$

117,389

 

 

$

113,527

 

 

$

230,916

 

Cost of revenue

 

60,318

 

 

 

65,182

 

 

 

 

Amortization of purchased intangible assets

 

1,569

 

 

 

2,123

 

 

 

 

Segment gross profit

 

55,502

 

 

 

46,222

 

 

 

101,724

 

Research and development and engineering

 

9,997

 

 

 

13,266

 

 

 

 

Selling, general and administrative

 

18,495

 

 

 

13,622

 

 

 

 

Amortization of purchased intangible assets

 

2,801

 

 

 

2,949

 

 

 

 

Restructuring, acquisition, and related costs

 

279

 

 

 

366

 

 

 

 

Segment operating income

 

23,930

 

 

 

16,019

 

 

 

39,949

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(14,342

)

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(8,254

)

Other income (expense), net

 

—

 

 

 

—

 

 

 

(437

)

Income before income taxes

$

23,930

 

 

$

16,019

 

 

$

16,916

 

 

 

Three Months Ended

 

 

March 28,

 

 

March 29,

 

Depreciation and Amortization Expenses

2025

 

 

2024

 

Automation Enabling Technologies

$

5,476

 

 

$

5,856

 

Medical Solutions

 

7,679

 

 

 

6,597

 

Unallocated

 

408

 

 

 

476

 

Total

$

13,563

 

 

$

12,929

 

 

 

March 28,

 

 

December 31,

 

 

2025

 

 

2024

 

Accounts Receivable

 

 

 

 

 

Automation Enabling Technologies

$

77,726

 

 

$

70,829

 

Medical Solutions

 

86,475

 

 

 

80,197

 

Total accounts receivable

$

164,201

 

 

$

151,026

 

Inventories

 

 

 

 

 

Automation Enabling Technologies

$

90,002

 

 

$

89,009

 

Medical Solutions

 

55,433

 

 

 

55,597

 

Total inventories

$

145,435

 

 

$

144,606

 

Total segment assets

$

309,636

 

 

$

295,632

 

Revenue by Geography

The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands):

 

Three Months Ended

 

 

March 28,

 

 

March 29,

 

 

2025

 

 

2024

 

United States

$

123,646

 

 

$

117,081

 

Germany

 

28,477

 

 

 

33,181

 

Rest of Europe

 

31,781

 

 

 

30,971

 

China

 

21,434

 

 

 

17,071

 

Rest of Asia-Pacific

 

23,379

 

 

 

27,256

 

Other

 

4,649

 

 

 

5,356

 

Total

$

233,366

 

 

$

230,916

 

The majority of revenue from the Automation Enabling Technologies and Medical Solutions segments are generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue.

Revenue by End Market

The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows:

 

Three Months Ended

 

 

March 28,

 

 

March 29,

 

 

2025

 

 

2024

 

Medical

 

55

%

 

 

55

%

Advanced Industrial

 

45

%

 

 

45

%

Total

 

100

%

 

 

100

%

 

The majority of the revenue from the Automation Enabling Technologies segment is generated from sales to customers in the advanced industrial market. The majority of the revenue from the Medical Solutions segment is generated from sales to customers in the medical market.