XML 37 R23.htm IDEA: XBRL DOCUMENT v3.6.0.2
SEGMENT INFORMATION
 12 Months Ended
Oct. 31, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION
15.
SEGMENT INFORMATION
 
We operate in a single segment: industrial automation equipment. We design, manufacture and sell computerized (i.e., Computer Numeric Control) machine tools, consisting primarily of vertical machining centers (mills) and turning centers (lathes), to companies in the metal cutting industry through a worldwide sales, service and distribution network.  Although the majority of our computer control systems and software products are proprietary, they predominantly use industry standard personal computer components.  Our computer control systems and software products are primarily sold as integral components of our computerized machine tool products.  We also provide machine tool components, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training support.
 
We sell our products through more than 195 independent agents and distributors throughout the Americas, Europe and Asia. Our line is the primary line for the majority of our distributors globally even though some may carry competitive products. We also have our own direct sales and service organizations in China, France, Germany, India, Italy, Poland, Singapore, South Africa, Taiwan, the United Kingdom, and certain areas of the United States, which are among the world's principal machine tool consuming countries. During fiscal 2016, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2016, approximately 69% of our revenues were from customers located outside of the U.S. and no single end-user of our products accounted for more than 5% of our total sales and service fees.
 
The following table sets forth the contribution of each of our product groups to our total sales and service fees during each of the past three fiscal years (in thousands):
 
Net Sales and Service Fees by Product Category
 
 
 
Year ended October 31,
 
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
Computerized Machine Tools *
 
$
195,618
 
$
189,712
 
$
193,937
 
Computer Control Systems and Software †
 
 
2,078
 
 
3,085
 
 
3,407
 
Service Parts
 
 
21,908
 
 
19,375
 
 
17,391
 
Service Fees
 
 
7,685
 
 
7,211
 
 
7,568
 
Total
 
$
227,289
 
$
219,383
 
$
222,303
 
 
* Amounts shown include sales of Milltronics and Takumi computerized machine tools to third parties since the respective dates of acquisitions.
† Amounts shown do not include computer control systems and software sold as an integrated component of computerized machine systems.
 
The following table sets forth revenues by geographic area, based on customer location, for each of the past three fiscal years (in thousands):
 
Revenues by Geographic Area
 
 
 
Year Ended October 31,
 
 
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
 
 
United States of America
 
$
70,630
 
$
66,781
 
$
59,414
 
Canada
 
 
3,881
 
 
3,114
 
 
2,434
 
South America
 
 
1,950
 
 
1,930
 
 
450
 
Total Americas
 
 
76,461
 
 
71,825
 
 
62,298
 
 
 
 
 
 
 
 
 
 
 
 
Germany
 
 
44,411
 
 
43,727
 
 
51,581
 
United Kingdom
 
 
25,313
 
 
30,235
 
 
34,288
 
Italy
 
 
12,947
 
 
11,768
 
 
13,456
 
France
 
 
13,787
 
 
13,162
 
 
9,972
 
Other Europe
 
 
27,150
 
 
26,598
 
 
24,728
 
Total Europe
 
 
123,608
 
 
125,490
 
 
134,025
 
 
 
 
 
 
 
 
 
 
 
 
Asia Pacific
 
 
25,633
 
 
20,265
 
 
23,766
 
Other Foreign
 
 
1,587
 
 
1,803
 
 
2,214
 
Total Europe, Asia Pacific and Other Foreign
 
 
150,828
 
 
147,558
 
 
160,005
 
 
 
$
227,289
 
$
219,383
 
$
222,303
 
 
Long-lived tangible assets, net by geographic area, were (in thousands):
 
 
 
As of October 31,
 
 
 
2016
 
2015
 
United States of America
 
$
7,846
 
$
8,658
 
Foreign countries
 
 
5,911
 
 
5,893
 
 
 
$
13,757
 
$
14,551
 
 
Net assets by geographic area were (in thousands):
 
 
 
As of October 31,
 
 
 
2016
 
2015
 
Americas
 
$
84,040
 
$
83,236
 
Europe
 
 
60,861
 
 
59,468
 
Asia Pacific
 
 
40,574
 
 
31,864
 
 
 
$
185,475
 
$
174,568