Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.3
Segment Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information

Note 12—Segment Information

The Company has organized its business into two operating segments based on the product specialties: the vascular segment and the dermatology segment.

In deciding how to allocate resources and assess performance, the Company’s chief operating decision maker regularly evaluates the sales and gross profit of these segments. Amounts included within selling, general and administrative expense and research and development expense are general to the Company and not specific to a particular segment; therefore, these amounts are not evaluated by the Company’s chief operating decision maker on a segmented basis.

The following tables summarize segment performance (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Vascular

 

$

226

 

 

$

789

 

 

$

1,121

 

 

$

973

 

Dermatology

 

 

1,682

 

 

 

1,275

 

 

 

4,688

 

 

 

3,296

 

Net revenue

 

$

1,908

 

 

$

2,064

 

 

$

5,809

 

 

$

4,269

 

Vascular

 

$

920

 

 

$

579

 

 

$

3,510

 

 

$

1,050

 

Dermatology

 

 

1,505

 

 

 

701

 

 

 

3,590

 

 

 

1,956

 

Cost of revenue

 

$

2,425

 

 

$

1,280

 

 

$

7,100

 

 

$

3,006

 

Vascular

 

$

(694

)

 

$

210

 

 

$

(2,389

)

 

$

(77

)

Dermatology

 

 

177

 

 

 

574

 

 

 

1,098

 

 

 

1,340

 

Gross (loss) profit

 

$

(517

)

 

$

784

 

 

$

(1,291

)

 

$

1,263

 

 

Generally, all assets are common assets, except for lasers placed with customers, which are a subset of property and equipment. The net book value of demonstration lasers and lasers placed with customers aggregated in the vascular segment was $2.7 million and $2.2 million as of September 30, 2019 and December 31, 2018, respectively. The net book value of the demonstration lasers and lasers placed with customers aggregated in the dermatology segment was $0.8 million and $0.7 million as of September 30, 2019 and December 31, 2018, respectively.

Sales to one individual customer and country accounted for 13% of revenue in the three months ended September 30, 2019. No sales to an individual customer or country other than the United States accounted for more than 10% of net revenue for the three months ended September 30, 2018 and the nine months ended September 30, 2019 and 2018. Net revenue, classified by the major geographic areas in which our customers are located, was as follows (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

United States

 

$

1,618

 

 

$

1,992

 

 

$

5,219

 

 

$

3,900

 

All other countries

 

 

290

 

 

 

72

 

 

 

590

 

 

 

369

 

Net revenue

 

$

1,908

 

 

$

2,064

 

 

$

5,809

 

 

$

4,269