| Information Concerning Industry Segments And Major Customers |
NOTE 12- INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS
The Company classifies its businesses into three segments as follows:
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Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications;
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Transition Networks manufactures media converters, NIDs, NICs, Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network; and
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JDL Technologies provides technology solutions including virtualization, managed services, wired and wireless network design and implementation services, and converged infrastructure configuration and deployment.
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Management has chosen to organize the enterprise and disclose reportable segments based on products and services. Intersegment revenues are eliminated upon consolidation.
Suttle products are sold principally to U.S. customers. Suttle operates manufacturing facilities in the U.S. and Costa Rica. Net long-lived assets held in foreign countries were approximately $2,932,000 and $2,810,000 at December 31, 2015 and 2014, respectively. Transition Networks manufactures its products in the United States and makes sales in both the U.S. and international markets. JDL Technologies operates in the U.S. and makes sales in the U.S. Consolidated sales to U.S. customers were approximately 81%, 86% and 87% of sales from continuing operations in 2015, 2014 and 2013 respectively. In 2015, sales to one of Suttle’s customers accounted for 16.2% of consolidated sales and one of JDL’s customers accounted for 10.9% of consolidated sales. In 2014, sales to one of Suttle’s customers accounted for 33.6% of consolidated sales. In 2013, sales to one of JDL Technologies’ customers accounted for 17.5% of consolidated sales and one of Suttle’s customers accounted for 18.7% of consolidated sales.
Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2015, 2014 and 2013 is as follows:
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Other
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Eliminations
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Total
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2015
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Sales
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$
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50,082,000
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$
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42,570,000
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$
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15,672,000
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$
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-
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$
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(654,000)
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$
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107,670,000
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Cost of sales
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41,232,000
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24,088,000
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10,866,000
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-
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(62,000)
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76,124,000
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Gross profit
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8,850,000
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18,482,000
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4,806,000
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-
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(592,000)
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31,546,000
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Selling, general and
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administrative expenses
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15,285,000
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22,495,000
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3,635,000
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-
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(585,000)
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40,830,000
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Pension settlement costs
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-
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-
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-
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1,222,000
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-
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1,222,000
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Operating (loss) income
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$
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(6,435,000)
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$
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(4,013,000)
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$
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1,171,000
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$
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(1,222,000)
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$
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(7,000)
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$
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(10,506,000)
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Depreciation and amortization
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$
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2,125,000
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$
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1,038,000
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$
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150,000
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$
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-
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$
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-
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$
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3,313,000
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Capital expenditures
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$
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1,710,000
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$
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313,000
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$
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263,000
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$
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115,000
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$
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(7,000)
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$
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2,394,000
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Assets
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$
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38,163,000
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$
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23,512,000
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$
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5,964,000
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$
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20,284,000
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$
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(7,000)
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$
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87,916,000
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Other
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Eliminations
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Total
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2014
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Sales
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$
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67,331,000
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$
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43,174,000
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$
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8,567,000
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$
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-
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$
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-
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$
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119,072,000
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Cost of sales
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46,339,000
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23,975,000
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6,599,000
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-
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-
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76,913,000
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Gross profit
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20,992,000
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19,199,000
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1,968,000
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-
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-
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42,159,000
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Selling, general and
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administrative expenses
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14,389,000
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21,393,000
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2,846,000
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-
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-
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38,628,000
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Restructuring expense
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-
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238,000
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-
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-
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-
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238,000
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Operating income (loss)
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$
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6,603,000
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$
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(2,432,000)
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$
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(878,000)
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$
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-
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$
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-
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$
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3,293,000
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Depreciation and amortization
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$
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1,386,000
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$
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944,000
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$
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152,000
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$
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-
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$
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-
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$
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2,482,000
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Capital expenditures
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$
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4,471,000
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$
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589,000
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$
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43,000
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$
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474,000
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$
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-
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$
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5,577,000
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Assets
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$
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38,083,000
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$
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26,508,000
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$
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3,816,000
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$
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31,879,000
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$
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-
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$
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100,286,000
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Other
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Eliminations
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Total
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2013
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Sales
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$
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54,346,000
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$
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43,857,000
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$
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33,117,000
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$
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-
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$
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-
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$
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131,320,000
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Cost of sales
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38,535,000
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21,438,000
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26,448,000
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-
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-
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86,421,000
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Gross profit
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15,811,000
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22,419,000
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6,669,000
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-
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-
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44,899,000
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Selling, general and
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administrative expenses
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11,869,000
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21,581,000
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3,292,000
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-
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-
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36,742,000
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Impairment
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-
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5,850,000
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-
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-
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-
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5,850,000
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Restructuring expense
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226,000
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779,000
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145,000
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-
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-
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1,150,000
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Operating income (loss)
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$
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3,716,000
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$
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(5,791,000)
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$
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3,232,000
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$
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-
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$
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-
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$
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1,157,000
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Depreciation and amortization
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$
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1,044,000
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$
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970,000
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$
|
171,000
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$
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-
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$
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-
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$
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2,185,000
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Capital expenditures
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$
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1,215,000
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$
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919,000
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$
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46,000
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$
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519,000
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$
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-
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$
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2,699,000
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Assets
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$
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30,637,000
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$
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29,440,000
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$
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11,350,000
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$
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32,106,000
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$
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-
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$
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103,533,000
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