| Segment Information |
12. Segment Information We operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division) and (c) medical monitoring systems (Healthcare division). Factors used to identify our reportable segments primarily reflect our organizational and management structure around differences in products and industry markets. The reconciliation of segment totals to consolidated totals includes intersegment eliminations and certain unallocated corporate items that include executive compensation and certain other general and administrative expenses; expenses related to stock issuances, legal, audit and other professional service fees, depreciation and amortization, and corporate assets. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to external OEM customers, as well as to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies. We disclose segment income (loss) from operations as our measure of segment profit/loss, reconciled to consolidated income (loss) from operations. The measure of segment income (loss) from operations excludes restructuring and other charges presented below which are presented to reconcile to consolidated income from operations. Segment assets represent total current and noncurrent assets for each reportable segment. Business segment disclosures consider information used by/provided to our chief operating decision maker (“CODM”). Our Chief Executive Officer serves as the CODM. The CODM uses segment assets and segment income (loss) from operations, as well as the expenses within each segment including cost of sales, selling, general and administrative expenses and research and development expenses, to allocate resources to segments in the budgeting and forecasting process along with periodic ongoing reviews of results and overall activity in the markets where each segment operates. The following tables present our results of operations and identifiable assets by our three industry segments, along with amounts for intersegment eliminations and unallocated corporate items, which are reconciled to consolidated amounts (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2025 | | | | | | Optoelectronics | | | | | | | | | | | | | | | | | | | | | and | | | | | Total | | | | | | | | | | | Security | | Manufacturing | | Healthcare | | Reportable | | Intersegment | | Unallocated | | | | | | Division | | Division | | Division | | Segments | | Eliminations | | Corporate | | Consolidated | Revenues (1): | | | | | | | | | | | | | | | | | | | | | | External customer revenue | | $ | 254,248 | | $ | 89,632 | | $ | 40,743 | | $ | 384,623 | | $ | — | | $ | — | | $ | 384,623 | Intersegment revenue | | | — | | | 19,829 | | | — | | | 19,829 | | | (19,829) | | | — | | | — | Total revenues | | | 254,248 | | | 109,461 | | | 40,743 | | | 404,452 | | | (19,829) | | | — | | | 384,623 | Cost of goods sold | | | 173,345 | | | 86,514 | | | 20,143 | | | 280,002 | | | (18,564) | | | — | | | 261,438 | Selling, general and administrative expenses | | | 36,109 | | | 8,957 | | | 13,060 | | | 58,126 | | | — | | | 8,829 | | | 66,955 | Research and development expenses | | | 13,828 | | | 1,237 | | | 5,362 | | | 20,427 | | | — | | | — | | | 20,427 | Segment income from operations | | $ | 30,966 | | $ | 12,753 | | $ | 2,178 | | $ | 45,897 | | $ | (1,265) | | $ | (8,829) | | $ | 35,803 | | | | | | | | | | | | | | | | | | | | | | | Segment assets (2) (3) | | $ | 1,637,446 | | $ | 290,831 | | $ | 270,883 | | $ | 2,199,160 | | $ | (50,159) | | $ | 150,155 | | $ | 2,299,156 | Capital expenditures | | $ | 3,562 | | $ | 1,595 | | $ | 1,207 | | $ | 6,364 | | $ | — | | $ | 664 | | | 7,028 | Depreciation and amortization | | $ | 6,927 | | $ | 1,681 | | $ | 1,167 | | $ | 9,775 | | $ | — | | $ | 485 | | | 10,260 | | | | | | | | | | | | | | | | | | | | | | | Reconciliation to consolidated income from operations – Three Months Ended September 30, 2025 | | | | | | | | | | | | | | | | | | | | | | Consolidated segment income from operations | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 35,803 | Restructuring and other charges | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,730) | Consolidated income from operations | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 33,073 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2026 | | | | | | Optoelectronics | | | | | | | | | | | | | | | | | | | | | and | | | | | Total | | | | | | | | | | | | Security | | Manufacturing | | Healthcare | | Reportable | | Intersegment | | Unallocated | | | | | | Division | | Division | | Division | | Segments | | Eliminations | | Corporate | | Consolidated | Revenues (1): | | | | | | | | | | | | | | | | | | | | | | External customer revenue | | $ | 264,126 | | $ | 104,218 | | $ | 35,128 | | $ | 403,472 | | $ | — | | $ | — | | $ | 403,472 | Intersegment revenue | | | — | | | 15,507 | | | — | | | 15,507 | | | (15,507) | | | — | | | — | Total revenues | | | 264,126 | | | 119,725 | | | 35,128 | | | 418,979 | | | (15,507) | | | — | | | 403,472 | Cost of goods sold | | | 181,881 | | | 94,851 | | | 18,119 | | | 294,851 | | | (15,180) | | | — | | | 279,671 | Selling, general and administrative expenses | | | 37,107 | | | 9,036 | | | 14,088 | | | 60,231 | | | — | | | 8,478 | | | 68,709 | Research and development expenses | | | 14,147 | | | 1,492 | | | 3,787 | | | 19,426 | | | — | | | — | | | 19,426 | Segment income from operations | | $ | 30,991 | | $ | 14,346 | | $ | (866) | | $ | 44,471 | | $ | (327) | | $ | (8,478) | | $ | 35,666 | | | | | | | | | | | | | | | | | | | | | | | Segment assets (2) (3) | | $ | 1,583,904 | | $ | 332,742 | | $ | 289,971 | | $ | 2,206,617 | | $ | (43,472) | | $ | 326,297 | | $ | 2,489,442 | Capital expenditures | | $ | 4,332 | | $ | 2,123 | | $ | 841 | | $ | 7,296 | | $ | — | | $ | 359 | | | 7,655 | Depreciation and amortization | | $ | 5,831 | | $ | 1,709 | | $ | 1,023 | | $ | 8,563 | | $ | — | | $ | 476 | | | 9,039 | | | | | | | | | | | | | | | | | | | | | | | Reconciliation to consolidated income from operations – Three Months Ended September 30, 2026 | | | | | | | | | | | | | | | | | | | | | | Consolidated segment income from operations | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 35,666 | Restructuring and other charges | | | — | | | — | | | — | | | — | | | — | | | — | | | (2,096) | Consolidated income from operations | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 33,570 | Segment assets as of June 30, 2026, for comparative purposes (2) (3) | | $ | 1,581,183 | | $ | 308,765 | | $ | 288,163 | | $ | 2,178,111 | | $ | (47,496) | | $ | 371,837 | | $ | 2,502,452 |
(1) | For the three months ended September 30, 2025 and 2026, no customer accounted for 10% or more of our consolidated net revenues. |
(2)As of June 30, 2026 and September 30, 2026, one customer in the Security division accounted for 25% of accounts receivable, net. (3)Eliminations in assets reflect the amount of inter-segment profits in inventory and inter-segment ROU assets under ASC 842 as of the balance sheet date. Such inter-segment profit will be realized when inventory is shipped to the external customers of the Security and Healthcare divisions.
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