XML 25 R23.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
SEGMENT INFORMATION
12 Months Ended
Oct. 31, 2019
SEGMENT INFORMATION  
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, automation equipment and solutions for job shops, software options, control upgrades, accessories and replacement parts for our products, as well as customer service and training and applications support.

We principally sell our products through more than 190 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, Taiwan, the United Kingdom, and certain areas of the United States, which are among the world's principal machine tool consuming countries. During fiscal 2019, no distributor accounted for more than 5% of our sales and service fees. In fiscal 2019, approximately 64% of our revenues were from customers located outside of the U.S., including customers located in Canada, Mexico and Central and South America, 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 and services 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, 

 

    

2019

    

2018

    

2017

Computerized Machine Tools

 

$

223,735

  

$

261,710

 

$

209,311

Computer Control Systems and Software

 

 

2,818

 

 

2,870

 

 

2,324

Service Parts

 

 

27,854

 

 

27,501

 

 

24,255

Service Fees

 

 

8,970

 

 

8,590

 

 

7,777

Total

 

$

263,377

  

$

300,671

 

$

243,667


      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, 

 

    

2019

    

2018

    

2017

United States of America

 

$

95,196

  

$

87,231

 

$

70,912

Canada

 

 

2,580

 

 

2,915

 

 

3,801

Central & South Americas

 

 

1,409

 

 

2,194

 

 

1,844

Total Americas

 

 

99,185

 

 

92,340

 

 

76,557

 

 

 

 

 

 

 

 

 

 

Germany

 

 

52,002

 

 

62,346

 

 

48,786

United Kingdom

 

 

29,349

 

 

34,216

 

 

28,019

Italy

 

 

14,772

 

 

16,691

 

 

13,416

France

 

 

14,346

 

 

15,815

 

 

13,917

Other Europe

 

 

20,028

 

 

32,034

 

 

27,583

Total Europe

 

 

130,497

 

 

161,102

 

 

131,721

 

 

 

 

 

 

 

 

 

 

China

 

 

15,706

 

 

27,748

 

 

22,456

Other Asia Pacific

 

 

16,858

 

 

17,937

 

 

10,238

Total Asia Pacific

 

 

32,564

 

 

45,685

 

 

32,694

 

 

 

 

 

 

 

 

 

 

Other Foreign

 

 

1,131

 

 

1,544

 

 

2,695

Grand Total

 

$

263,377

  

$

300,671

 

$

243,667

 

Long–lived tangible assets, net by geographic area, were (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

As of October 31,

 

    

2019

    

2018

    

2017

United States of America

 

$

7,967

  

$

8,375

 

$

7,599

Foreign countries

 

 

8,006

 

 

6,617

 

 

6,185

 

 

$

15,973

  

$

14,992

 

$

13,784

 

Net assets by geographic area were (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

As of October 31,

 

    

2019

    

2018

    

2017

Americas

 

$

103,863

  

$

96,348

 

$

86,432

Europe

 

 

71,411

 

 

74,558

 

 

70,536

Asia Pacific

 

 

64,971

 

 

51,947

 

 

46,117

 

 

$

240,245

  

$

222,853

 

$

203,085