Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
 6 Months Ended
Jun. 30, 2016
Segments Information [Abstract]  
Segment Information

NOTE 11 – SEGMENT INFORMATION



Effective January 1, 2016, the Company realigned its business operations. As a result of the realignment, the Company has segregated its Transition Networks subsidiary TN EMEA (now renamed Net2Edge) as a separate operating segment. Following this realignment, the Company classifies its businesses into four segments as follows:



·

Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications;

·

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;

·

JDL Technologies provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, HIPAA-compliant IT services, and converged infrastructure configuration and deployment; and

·

Net2Edge provides business-critical systems for customers worldwide with a sharp focus on the telecommunications carrier and enables carriers to connect legacy networks to high-speed services.



Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. To conform to the 2016 presentation, the Company has reclassified 2015 segment information to present the Net2Edge business unit as a separate segment.



Information concerning the Company’s continuing operations in the various segments for the three month periods ended June 30, 2016 and 2015 is as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Transition

 

JDL

 

 

 

 

 

Intersegment

 

 



 

Suttle

 

Networks

 

Technologies

 

Net2Edge

 

Other

 

Eliminations

 

Total

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

 11,216,000 

$

 10,175,000 

$

 4,650,000 

$

 591,000 

$

 -

$

 (321,000)

$

 26,311,000 

Cost of sales

 

 10,116,000 

 

 5,773,000 

 

 2,783,000 

 

 314,000 

 

 -

 

 (50,000)

 

 18,936,000 

Gross profit

 

 1,100,000 

 

 4,402,000 

 

 1,867,000 

 

 277,000 

 

 -

 

 (271,000)

 

 7,375,000 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  administrative expenses

 

 3,661,000 

 

 4,762,000 

 

 961,000 

 

 931,000 

 

 

 

 (268,000)

 

 10,047,000 

Operating (loss) income

$

 (2,561,000)

$

 (360,000)

$

 906,000 

$

 (654,000)

$

 -

$

 (3,000)

$

 (2,672,000)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

 616,000 

$

 232,000 

$

 63,000 

$

 32,000 

$

 -

$

 -

$

 943,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

 342,000 

$

 75,000 

$

 9,000 

$

 2,000 

$

 40,000 

$

 (3,000)

$

 465,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

 39,811,000 

$

 19,798,000 

$

 5,911,000 

$

 1,670,000 

$

 18,782,000 

$

 (26,000)

$

 85,946,000 







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Transition

 

JDL

 

 

 

 

 

Intersegment

 

 



 

Suttle

 

Networks

 

Technologies

 

Net2Edge

 

Other

 

Eliminations

 

Total

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

 11,788,000 

$

 11,753,000 

$

 4,718,000 

$

 203,000 

$

 -

$

 (264,000)

$

 28,198,000 

Cost of sales

 

 9,533,000 

 

 6,431,000 

 

 3,618,000 

 

 118,000 

 

 -

 

 (41,000)

 

 19,659,000 

Gross profit

 

 2,255,000 

 

 5,322,000 

 

 1,100,000 

 

 85,000 

 

 -

 

 (223,000)

 

 8,539,000 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  administrative expenses

 

 3,504,000 

 

 4,966,000 

 

 1,056,000 

 

 954,000 

 

 -

 

 (223,000)

 

 10,257,000 

Operating (loss) income

$

 (1,249,000)

$

 356,000 

$

 44,000 

$

 (869,000)

$

 -

$

 -

$

 (1,718,000)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

 546,000 

$

 231,000 

$

 38,000 

$

 36,000 

$

 -

$

 -

$

 851,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

 518,000 

$

 127,000 

$

 127,000 

$

 -

$

 30,000 

$

 -

$

 802,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

 41,872,000 

$

 24,806,000 

$

 4,212,000 

$

 1,868,000 

$

 24,813,000 

$

 -

$

 97,571,000 









 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Transition

 

JDL

 

 

 

 

 

Intersegment

 

 



 

Suttle

 

Networks

 

Technologies

 

Net2Edge

 

Other

 

Eliminations

 

Total

Six Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

 23,005,000 

$

 18,506,000 

$

 8,963,000 

$

 1,159,000 

$

 -

$

 (655,000)

$

 50,978,000 

Cost of sales

 

 19,860,000 

 

 10,920,000 

 

 5,641,000 

 

 554,000 

 

 -

 

 (142,000)

 

 36,833,000 

Gross profit

 

 3,145,000 

 

 7,586,000 

 

 3,322,000 

 

 605,000 

 

 -

 

 (513,000)

 

 14,145,000 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  administrative expenses

 

 7,147,000 

 

 9,401,000 

 

 1,968,000 

 

 1,662,000 

 

 -

 

 (494,000)

 

 19,684,000 

Pension liability adjustment gains

 

 

 

 -

 

 -

 

 

 

 (4,148,000)

 

 

 

 (4,148,000)

Operating (loss) income

$

 (4,002,000)

$

 (1,815,000)

$

 1,354,000 

$

 (1,057,000)

$

 4,148,000 

$

 (19,000)

$

 (1,391,000)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

 1,192,000 

$

 453,000 

$

 124,000 

$

 65,000 

$

 -

$

 -

$

 1,834,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

 821,000 

$

 160,000 

$

 84,000 

$

 2,000 

$

 223,000 

$

 (19,000)

$

 1,271,000 









 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Transition

 

JDL

 

 

 

 

 

Intersegment

 

 



 

Suttle

 

Networks

 

Technologies

 

Net2Edge

 

Other

 

Eliminations

 

Total

Six Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

 22,378,000 

$

 19,518,000 

$

 5,583,000 

$

 536,000 

$

 -

$

 (272,000)

$

 47,743,000 

Cost of sales

 

 18,682,000 

 

 11,038,000 

 

 4,442,000 

 

 204,000 

 

 -

 

 (49,000)

 

 34,317,000 

Gross profit

 

 3,696,000 

 

 8,480,000 

 

 1,141,000 

 

 332,000 

 

 -

 

 (223,000)

 

 13,426,000 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  administrative expenses

 

 7,810,000 

 

 9,732,000 

 

 1,866,000 

 

 1,650,000 

 

 -

 

 (223,000)

 

 20,835,000 

Operating loss

$

 (4,114,000)

$

 (1,252,000)

$

 (725,000)

$

 (1,318,000)

$

 -

$

 -

$

 (7,409,000)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

 1,053,000 

$

 444,000 

$

 66,000 

$

 70,000 

$

 -

$

 -

$

 1,633,000 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$

 1,167,000 

$

 193,000 

$

 170,000 

$

 20,000 

$

 105,000 

$

 -

$

 1,655,000