v3.26.1
Segment Information
 3 Months Ended
Apr. 03, 2026
Segment Reporting [Abstract]  
Segment Information

17. 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. Based upon the information provided to the CODM, we have determined that we have two reportable segments.

Automation Enabling Technologies

The Automation Enabling Technologies segment designs, manufactures and markets laser beam steering and scanning solutions, laser sources, robotic and precision motion, robotic end-of-arm tooling, and 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, imaging, identification and RFID solutions, advanced motion control solutions, light engines, and integrated operating room technologies. 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 April 3, 2026

 

 

 

Automation Enabling Technologies

 

 

Medical Solutions

 

 

Total

 

 

Revenue

$

131,244

 

 

$

126,463

 

 

$

257,707

 

 

Cost of revenue

 

67,292

 

 

 

71,730

 

 

 

 

 

Amortization of purchased intangible assets

 

1,201

 

 

 

2,558

 

 

 

 

 

Segment gross profit

 

62,751

 

 

 

52,175

 

 

 

114,926

 

 

Research and development and engineering

 

9,033

 

 

 

14,247

 

 

 

 

 

Selling, general and administrative

 

19,888

 

 

 

16,307

 

 

 

 

 

Amortization of purchased intangible assets

 

2,119

 

 

 

3,655

 

 

 

 

 

Restructuring, acquisition, and related costs

 

563

 

 

 

1,240

 

 

 

 

 

Segment operating income

 

31,148

 

 

 

16,726

 

 

 

47,874

 

 

Unallocated costs

 

—

 

 

 

—

 

 

 

(20,335

)

 

Interest income (expense), net

 

—

 

 

 

—

 

 

 

(1,843

)

 

Other income (expense), net

 

—

 

 

 

—

 

 

 

658

 

 

Income before income taxes

$

31,148

 

 

$

16,726

 

 

$

26,354

 

 

 

 

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

 

 

April 3,

 

 

March 28,

 

Depreciation and Amortization Expenses

2026

 

 

2025

 

Automation Enabling Technologies

$

4,199

 

 

$

5,476

 

Medical Solutions

 

9,577

 

 

 

7,679

 

Unallocated

 

384

 

 

 

408

 

Total

$

14,160

 

 

$

13,563

 

 

 

April 3,

 

 

December 31,

 

 

2026

 

 

2025

 

Accounts Receivable

 

 

 

 

 

Automation Enabling Technologies

$

80,671

 

 

$

76,685

 

Medical Solutions

 

93,263

 

 

 

108,195

 

Total accounts receivable

$

173,934

 

 

$

184,880

 

Inventories

 

 

 

 

 

Automation Enabling Technologies

$

114,541

 

 

$

110,205

 

Medical Solutions

 

78,602

 

 

 

78,079

 

Total inventories

$

193,143

 

 

$

188,284

 

Total segment assets

$

367,077

 

 

$

373,164

 

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

 

 

April 3,

 

 

March 28,

 

 

2026

 

 

2025

 

United States

$

122,014

 

 

$

123,646

 

Germany

 

36,294

 

 

 

28,477

 

Rest of Europe

 

42,240

 

 

 

31,781

 

China

 

23,549

 

 

 

21,434

 

Rest of Asia-Pacific

 

27,389

 

 

 

23,379

 

Other

 

6,221

 

 

 

4,649

 

Total

$

257,707

 

 

$

233,366

 

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

 

 

April 3,

 

 

March 28,

 

 

2026

 

 

2025

 

Medical

 

53

%

 

 

55

%

Advanced Industrial

 

47

%

 

 

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.