Disaggregation of Revenues, Geographic Sales and Product Sales

9 Months Ended

Sep. 28, 2018

Disaggregation of Revenues, Geographic Sales and Product Sales Disclosure [Text Block]

Note 9 — Disaggregation of Revenues, Geographic Sales and Product Sales

In the following tables, revenues are disaggregated by category, sales by geographic market and sales by product data. The following breaks down revenues into the following categories (in thousands):

	Three Months Ended				Nine Months Ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
Non-consignment sales	$	27,503	$	19,590	$	79,345	$	53,432
Consignment sales		4,267		3,883		13,423		12,327
Total net sales		31,770		23,473		92,768		65,759
Royalty income (1)		159		141		465		400
Total revenues	$	31,929	$	23,614	$	93,233	$	66,159

(1)	Shown as a separate line item in other income, net on the Condensed Consolidated Statements of Operations.

The Company markets and sells its products in over 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated net sales. Sales are attributed to countries based on location of customers. The composition of the Company’s net sales to unaffiliated customers is set forth below (in thousands):

	Three Months Ended				Nine Months Ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
China	$	13,349	$	7,397	$	35,224	$	18,069
Japan		6,006		4,633		17,781		12,849
Other (1)		12,415		11,443		39,763		34,841
Total revenues	$	31,770	$	23,473	$	92,768	$	65,759

(1)

No other location individually exceeds 10% of the total sales.

In addition, domestic and foreign sales are as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
Domestic	$	1,676	$	1,896	$	5,327	$	5,946
Foreign		30,094		21,577		87,441		59,813
Total revenues	$	31,770	$	23,473	$	92,768	$	65,759

100% of the Company’s sales are generated from the ophthalmic surgical product segment and the chief operating decision maker makes operating decisions and allocates resources based upon the consolidated operating results, and therefore the Company operates as one operating segment for financial reporting purposes. The Company’s principal products are implantable Collamer lenses (“ICLs”) used in refractive surgery and intraocular lenses (“IOLs”) used in cataract surgery. The composition of the Company’s net sales by product line is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
ICLs	$	26,418	$	18,110	$	74,868	$	49,698
Other product sales
IOLs		3,824		3,892		12,068		12,875
Other surgical products		1,528		1,471		5,832		3,186
Total other product sales		5,352		5,363		17,900		16,061
Total net sales	$	31,770	$	23,473	$	92,768	$	65,759

One customer, our distributor in China, accounted for 42% and 38% of net sales for the three and nine months ended September 28, 2018, respectively, and the same customer accounted for 32% and 27% of net sales for the three and nine months ended September 29, 2017, respectively. As of September 28, 2018 and December 29, 2017, respectively, one customer, our distributor in China, accounted for 36% and 24% of consolidated trade receivables.