| Segment Information |
19. 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, accounts receivable and inventories by reportable segments for the periods indicated were as follows (in thousands):
|
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|
|
|
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|
Year Ended December 31, 2025 |
|
|
Automation Enabling Technologies |
|
|
Medical Solutions |
|
|
Total |
|
Revenue |
$ |
500,835 |
|
|
$ |
479,765 |
|
|
$ |
980,600 |
|
Cost of revenue |
|
255,761 |
|
|
|
269,356 |
|
|
|
|
Amortization of purchased intangible assets |
|
5,568 |
|
|
|
10,708 |
|
|
|
|
Gross profit |
|
239,506 |
|
|
|
199,701 |
|
|
|
439,207 |
|
Research and development and engineering |
|
37,805 |
|
|
|
58,342 |
|
|
|
|
Selling, general and administrative |
|
76,316 |
|
|
|
60,034 |
|
|
|
|
Amortization of purchased intangible assets |
|
9,772 |
|
|
|
17,705 |
|
|
|
|
Restructuring, acquisition, and related costs |
|
1,082 |
|
|
|
12,448 |
|
|
|
|
Segment operating income |
|
114,531 |
|
|
|
51,172 |
|
|
|
165,703 |
|
Unallocated costs |
|
— |
|
|
|
— |
|
|
|
(71,691 |
) |
Interest income (expense), net |
|
— |
|
|
|
— |
|
|
|
(21,472 |
) |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
(2,898 |
) |
Income before income taxes |
$ |
114,531 |
|
|
$ |
51,172 |
|
|
$ |
69,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2024 |
|
|
Automation Enabling Technologies |
|
|
Medical Solutions |
|
|
Total |
|
Revenue |
$ |
490,620 |
|
|
$ |
458,625 |
|
|
$ |
949,245 |
|
Cost of revenue |
|
249,364 |
|
|
|
260,176 |
|
|
|
|
Amortization of purchased intangible assets |
|
6,281 |
|
|
|
8,492 |
|
|
|
|
Gross profit |
|
234,975 |
|
|
|
189,957 |
|
|
|
424,932 |
|
Research and development and engineering |
|
39,026 |
|
|
|
57,110 |
|
|
|
|
Selling, general and administrative |
|
75,423 |
|
|
|
53,798 |
|
|
|
|
Amortization of purchased intangible assets |
|
11,207 |
|
|
|
14,587 |
|
|
|
|
Restructuring, acquisition, and related costs |
|
2,916 |
|
|
|
6,930 |
|
|
|
|
Segment operating income |
|
106,403 |
|
|
|
57,532 |
|
|
|
163,935 |
|
Unallocated costs |
|
— |
|
|
|
— |
|
|
|
(53,351 |
) |
Interest income (expense), net |
|
— |
|
|
|
— |
|
|
|
(31,489 |
) |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
(29 |
) |
Income before income taxes |
$ |
106,403 |
|
|
$ |
57,532 |
|
|
$ |
79,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2023 |
|
|
Automation Enabling Technologies |
|
|
Medical Solutions |
|
|
Total |
|
Revenue |
$ |
499,220 |
|
|
$ |
382,442 |
|
|
$ |
881,662 |
|
Cost of revenue |
|
257,377 |
|
|
|
206,550 |
|
|
|
|
Amortization of purchased intangible assets |
|
7,045 |
|
|
|
5,105 |
|
|
|
|
Gross profit |
|
234,798 |
|
|
|
170,787 |
|
|
|
405,585 |
|
Research and development and engineering |
|
43,024 |
|
|
|
49,440 |
|
|
|
|
Selling, general and administrative |
|
72,860 |
|
|
|
49,227 |
|
|
|
|
Amortization of purchased intangible assets |
|
12,942 |
|
|
|
7,503 |
|
|
|
|
Restructuring, acquisition, and related costs |
|
9,691 |
|
|
|
1,359 |
|
|
|
|
Segment operating income |
|
96,281 |
|
|
|
63,258 |
|
|
|
159,539 |
|
Unallocated costs |
|
— |
|
|
|
— |
|
|
|
(49,043 |
) |
Interest income (expense), net |
|
— |
|
|
|
— |
|
|
|
(25,818 |
) |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
(930 |
) |
Income before income taxes |
$ |
96,281 |
|
|
$ |
63,258 |
|
|
$ |
83,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Depreciation and Amortization Expenses |
|
|
|
|
|
|
|
|
Automation Enabling Technologies |
$ |
22,441 |
|
|
$ |
23,873 |
|
|
$ |
26,680 |
|
Medical Solutions |
|
37,960 |
|
|
|
29,818 |
|
|
|
18,578 |
|
Unallocated |
|
1,531 |
|
|
|
1,872 |
|
|
|
1,354 |
|
Total |
$ |
61,932 |
|
|
$ |
55,563 |
|
|
$ |
46,612 |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2025 |
|
|
2024 |
|
Accounts Receivable |
|
|
|
|
|
Automation Enabling Technologies |
$ |
76,685 |
|
|
$ |
70,829 |
|
Medical Solutions |
|
108,195 |
|
|
|
80,197 |
|
Total accounts receivable |
$ |
184,880 |
|
|
$ |
151,026 |
|
Inventories |
|
|
|
|
|
Automation Enabling Technologies |
$ |
110,205 |
|
|
$ |
89,009 |
|
Medical Solutions |
|
78,079 |
|
|
|
55,597 |
|
Total inventories |
$ |
188,284 |
|
|
$ |
144,606 |
|
Total segment assets |
$ |
373,164 |
|
|
$ |
295,632 |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2025 |
|
|
2024 |
|
Total Assets |
|
|
|
|
|
Total segment assets |
$ |
373,164 |
|
|
$ |
295,632 |
|
Cash and cash equivalents |
|
380,871 |
|
|
|
113,989 |
|
Prepaid income taxes and income taxes receivable |
|
9,382 |
|
|
|
8,076 |
|
Prepaid expenses and other current assets |
|
19,184 |
|
|
|
15,951 |
|
Property, plant and equipment, net |
|
118,491 |
|
|
|
113,135 |
|
Operating lease assets |
|
41,697 |
|
|
|
42,908 |
|
Deferred tax assets |
|
27,381 |
|
|
|
22,887 |
|
Other assets |
|
8,812 |
|
|
|
5,991 |
|
Intangible assets, net |
|
180,776 |
|
|
|
185,844 |
|
Goodwill |
|
647,348 |
|
|
|
584,098 |
|
Total |
$ |
1,807,106 |
|
|
$ |
1,388,511 |
|
Geographic Information The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers is summarized for the periods indicated as follows (in thousands, except percentage data):
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|
|
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|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
Revenue |
|
|
% of Total |
|
|
Revenue |
|
|
% of Total |
|
|
Revenue |
|
|
% of Total |
|
United States |
$ |
519,007 |
|
|
|
52.9 |
% |
|
$ |
487,114 |
|
|
|
51.3 |
% |
|
$ |
418,265 |
|
|
|
47.4 |
% |
Germany |
|
114,647 |
|
|
|
11.7 |
|
|
|
123,244 |
|
|
|
13.0 |
|
|
|
128,229 |
|
|
|
14.5 |
|
Rest of Europe |
|
137,406 |
|
|
|
14.0 |
|
|
|
128,871 |
|
|
|
13.6 |
|
|
|
137,027 |
|
|
|
15.6 |
|
China |
|
93,201 |
|
|
|
9.5 |
|
|
|
84,562 |
|
|
|
8.9 |
|
|
|
73,444 |
|
|
|
8.3 |
|
Rest of Asia-Pacific |
|
97,034 |
|
|
|
9.9 |
|
|
|
107,054 |
|
|
|
11.3 |
|
|
|
105,350 |
|
|
|
12.0 |
|
Other |
|
19,305 |
|
|
|
2.0 |
|
|
|
18,400 |
|
|
|
1.9 |
|
|
|
19,347 |
|
|
|
2.2 |
|
Total |
$ |
980,600 |
|
|
|
100.0 |
% |
|
$ |
949,245 |
|
|
|
100.0 |
% |
|
$ |
881,662 |
|
|
|
100.0 |
% |
Long-lived assets consist of property, plant and equipment, net, and are aggregated based on the location of the assets. A summary of these long-lived assets is as follows (in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2025 |
|
|
2024 |
|
United States |
$ |
23,930 |
|
|
$ |
25,207 |
|
Germany |
|
32,303 |
|
|
|
31,684 |
|
U.K. |
|
34,420 |
|
|
|
34,078 |
|
Czech Republic |
|
17,696 |
|
|
|
15,345 |
|
China |
|
7,593 |
|
|
|
6,561 |
|
Rest of World |
|
2,549 |
|
|
|
260 |
|
Total |
$ |
118,491 |
|
|
$ |
113,135 |
|
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:
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|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Medical |
|
53 |
% |
|
|
55 |
% |
|
|
54 |
% |
Advanced Industrial |
|
47 |
% |
|
|
45 |
% |
|
|
46 |
% |
Total |
|
100 |
% |
|
|
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. Significant Customers During the year ended December 31, 2025 two OEM customers, each operating primarily in the medical end market, represented approximately 12% and 11%, respectively, of the Company's consolidated revenue. During the years ended December 31, 2024, and December 31, 2023, revenue from an OEM customer primarily in the medical market accounted for approximately 10% of the Company's consolidated revenue.
|