| Information Concerning Industry Segments And Major Customers |
NOTE 11- INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS
Effective January 1, 2014, the Company realigned the financial reporting for its business units. As a result of this realignment, all corporate general and administrative expenses that were previously categorized as “Other” are now included within the three business units as fully allocated costs. The Company classifies its businesses into three segments as follows:
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Suttle manufactures and markets copper and fiber connectivity systems, enclosure systems, xDSL filters and splitters, and active technologies for voice, data and video 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. There are no material intersegment revenues. In order to conform to the 2014 presentation, the Company has reclassified the previously non-allocated corporate expenses within the business segments.
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 $2,810,000 and $1,225,000 at December 31, 2014 and 2013, respectively. Transition Networks manufactures its products in the United States and makes sales in both the U.S. and international markets. JDL Technologies operates in the U.S. and makes sales in the U.S. Consolidated sales to U.S. customers were approximately 86%, 87% and 83% of sales from continuing operations in 2014, 2013 and 2012 respectively. In 2014, sales to one of Suttle’s customers accounted for 33.6% of consolidated sales. In 2013, sales to one of JDL Technologies’ customers accounted for 17.5% of consolidated sales and one of Suttle’s customers accounted for 18.7% of consolidated sales. In 2012, sales to one of Transition Networks’ customers accounted for 10.6% of consolidated sales and one of Suttle’s customers accounted for 16.6% of consolidated sales.
Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2014, 2013 and 2012 is as follows:
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2014
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Sales
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$
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67,330,307
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$
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43,173,864
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$
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8,567,268
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$
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-
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$
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119,071,439
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Cost of sales
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46,338,627
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23,975,363
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6,598,891
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-
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76,912,881
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Gross profit
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20,991,680
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19,198,501
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1,968,377
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-
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42,158,558
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Selling, general and
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administrative expenses
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14,388,765
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21,392,643
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2,846,393
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-
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38,627,801
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Restructuring expense
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-
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237,838
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-
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-
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237,838
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Operating income (loss)
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$
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6,602,915
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$
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(2,431,980)
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$
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(878,016)
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$
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-
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$
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3,292,919
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Depreciation and amortization
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$
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1,386,523
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$
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944,149
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$
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151,628
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$
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-
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$
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2,482,300
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Capital expenditures
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$
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4,470,636
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$
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589,362
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$
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42,914
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$
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474,127
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$
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5,577,039
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Assets
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$
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38,083,529
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$
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26,508,137
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$
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3,815,548
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$
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31,879,021
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$
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100,286,235
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2013
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Sales
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$
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54,346,428
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$
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43,856,640
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$
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33,116,442
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$
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-
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$
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131,319,510
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Cost of sales
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38,534,823
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21,438,115
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26,448,044
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-
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86,420,982
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Gross profit
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15,811,605
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22,418,525
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6,668,398
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-
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44,898,528
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Selling, general and
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administrative expenses
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11,869,268
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21,581,156
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3,292,445
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-
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36,742,869
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Impairment
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-
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5,849,853
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-
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-
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5,849,853
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Restructuring expense
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225,962
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778,760
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144,717
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-
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1,149,439
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Operating income (loss)
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$
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3,716,375
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$
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(5,791,244)
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$
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3,231,236
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$
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-
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$
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1,156,367
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Depreciation and amortization
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$
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1,044,363
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$
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969,482
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$
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170,985
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$
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-
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$
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2,184,830
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Capital expenditures
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$
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1,215,394
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$
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919,376
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$
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46,014
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$
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518,563
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$
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2,699,347
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Assets
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$
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30,636,805
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$
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29,440,438
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$
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11,350,381
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$
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32,105,117
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$
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103,532,741
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2012
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Sales
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$
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45,030,184
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$
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53,842,940
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$
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5,376,530
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$
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-
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$
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104,249,654
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Cost of sales
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33,056,579
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25,848,307
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3,847,877
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-
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62,752,763
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Gross profit
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11,973,605
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27,994,633
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1,528,653
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-
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41,496,891
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Selling, general and
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administrative expenses
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10,905,357
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24,645,048
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2,550,368
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-
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38,100,773
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Operating income (loss)
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$
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1,068,248
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$
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3,349,585
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$
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(1,021,715)
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$
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-
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$
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3,396,118
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Depreciation and amortization
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$
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1,025,380
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$
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981,080
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$
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127,051
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$
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-
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$
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2,133,511
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Capital expenditures
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$
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1,167,495
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$
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412,568
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$
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36,891
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$
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991,004
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$
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2,607,958
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Assets
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$
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26,148,148
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$
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35,851,189
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$
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8,385,337
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$
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42,149,971
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$
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112,534,645
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