Novanta (NOVT) 8-K Sales and Gross Profit by Reportable Segment

Exhibit 99.1

GSI GROUP INC.

Sales and Gross Profit by Reportable Segment

(UNAUDITED)

Reorganization of Reporting Segments

The Company previously operated in three reportable segments: Laser Products, Precision Motion and Technologies and Semiconductor Systems. The Company committed to a plan for the sale of the Semiconductor Systems and Laser Systems businesses in the second quarter of 2012. As a result, these businesses have been reported as discontinued operations in the consolidated financial statements.

As a result of the NDS acquisition and restructuring activities, the Company realigned its reportable segments into two segments: Laser Products and Precision Technologies. The segment realignment resulted in the Laser Scanners product line being moved to the Laser Products segment and added NDS to the Precision Technologies segment. The segment realignment was based on the following factors: (i) customers and sales channel overlap; (ii) commonality amongst customer applications; (iii) allocation of resources, as the Company has a Group President for each of its two reportable segments who is held accountable for the overall results of the respective segment; (iv) consistency with the structure of the Company’s senior management non-equity incentive program for each segment’s senior management; (v) grouping together those product lines whose organizational and operating cost structures we expect will be consolidated in the future; and (vi) meetings between the chief operating decision maker and the two segment Group Presidents to review the operating performance of each segment and to allocate resources.

Reportable segment financial information has been revised based on the circumstances outlined above. The following table sets forth the external sales, gross profit and gross profit margin, as restated, for each of our reportable segments for the periods noted (dollars in thousands):

	Three Months Ended												Twelve Months Ended			Three Months Ended												Twelve Months Ended
	April 1, 2011			July 1, 2011			September 30, 2011			December 31, 2011			December 31, 2011			March 30, 2012			June 29, 2012			September 28, 2012			December 31, 2012			December 31, 2012
Sales:
Laser Products	$	48,430		$	51,564		$	51,667		$	44,353		$	196,014		$	44,162		$	46,297		$	48,369		$	47,513		$	186,341
Precision Technologies		29,073			31,045			27,037			21,127			108,282			21,024			24,082			21,151			18,900			85,157
Total	$	77,503		$	82,609		$	78,704		$	65,480		$	304,296		$	65,186		$	70,379		$	69,520		$	66,413		$	271,498
Gross profit:
Laser Products	$	21,126		$	23,477		$	22,834		$	18,454		$	85,891		$	18,585		$	18,853		$	19,245		$	18,773		$	75,456
Precision Technologies		13,054			14,053			12,259			9,833			49,199			9,278			12,049			9,903			8,715			39,945
Corporate(1)		(438	)		(530	)		(508	)		(514	)		(1,990	)		(182	)		(235	)		(295	)		(213	)		(925	)
Total	$	33,742		$	37,000		$	34,585		$	27,773		$	133,100		$	27,681		$	30,667		$	28,853		$	27,275		$	114,476
Gross profit percentages:
Laser Products		43.6	%		45.5	%		44.2	%		41.6	%		43.8	%		42.1	%		40.7	%		39.8	%		39.5	%		40.5	%
Precision Technologies		44.9	%		45.3	%		45.3	%		46.5	%		45.4	%		44.1	%		50.0	%		46.8	%		46.1	%		46.9	%
Total		43.5	%		44.8	%		43.9	%		42.4	%		43.7	%		42.5	%		43.6	%		41.5	%		41.1	%		42.2	%

⁽¹⁾  Corporate costs primarily represent unallocated overhead related to discontinued operations.