| 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:
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·
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Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications;
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·
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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;
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·
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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
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·
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Net2Edge enables telecommunications carriers to connect legacy networks to high-speed services.
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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 September 30, 2016 and 2015 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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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended September 30, 2016
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Sales
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$
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10,420,000
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$
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11,789,000
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$
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3,397,000
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$
|
275,000
|
$
|
-
|
$
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(264,000)
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$
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25,617,000
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Cost of sales
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10,080,000
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6,350,000
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2,384,000
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128,000
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-
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(16,000)
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18,926,000
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Gross profit
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340,000
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5,439,000
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1,013,000
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|
147,000
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-
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(248,000)
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6,691,000
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Selling, general and
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|
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administrative expenses
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2,891,000
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3,824,000
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563,000
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836,000
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(248,000)
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7,866,000
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Operating (loss) income
|
$
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(2,551,000)
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$
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1,615,000
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$
|
450,000
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$
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(689,000)
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$
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-
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$
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-
|
$
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(1,175,000)
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Depreciation and amortization
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$
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627,000
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$
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205,000
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$
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65,000
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$
|
23,000
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$
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-
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$
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-
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$
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920,000
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|
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|
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|
|
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Capital expenditures
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$
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536,000
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$
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26,000
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$
|
44,000
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$
|
12,000
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$
|
-
|
$
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-
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$
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618,000
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Assets
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$
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36,830,000
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$
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17,758,000
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$
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3,729,000
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$
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1,488,000
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$
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16,692,000
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$
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(26,000)
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$
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76,471,000
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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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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended September 30, 2015
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Sales
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$
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15,091,000
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$
|
11,897,000
|
$
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4,982,000
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$
|
538,000
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$
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-
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$
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(262,000)
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$
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32,246,000
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Cost of sales
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12,000,000
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6,447,000
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3,206,000
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250,000
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-
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(81,000)
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21,822,000
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Gross profit
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3,091,000
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5,450,000
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|
1,776,000
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|
288,000
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|
-
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(181,000)
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10,424,000
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Selling, general and
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administrative expenses
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3,870,000
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4,552,000
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856,000
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896,000
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-
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(181,000)
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9,993,000
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Operating (loss) income
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$
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(779,000)
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$
|
898,000
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$
|
920,000
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$
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(608,000)
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$
|
-
|
$
|
-
|
$
|
431,000
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|
|
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|
|
|
|
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|
|
|
|
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Depreciation and amortization
|
$
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539,000
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$
|
229,000
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$
|
39,000
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$
|
35,000
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$
|
-
|
$
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-
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$
|
842,000
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|
|
|
|
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Capital expenditures
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$
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67,000
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$
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34,000
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$
|
16,000
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$
|
-
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$
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10,000
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$
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-
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$
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127,000
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Assets
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$
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41,588,000
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$
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25,636,000
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$
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6,792,000
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$
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1,540,000
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$
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23,055,000
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$
|
-
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$
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98,611,000
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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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Net2Edge
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Other
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Eliminations
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Total
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Nine Months Ended September 30, 2016
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Sales
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$
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33,424,000
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$
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30,294,000
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$
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12,360,000
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$
|
1,434,000
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$
|
-
|
$
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(918,000)
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$
|
76,594,000
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Cost of sales
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29,939,000
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17,270,000
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8,025,000
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|
682,000
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-
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(157,000)
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|
55,759,000
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Gross profit
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3,485,000
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|
13,024,000
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|
4,335,000
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|
752,000
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|
-
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(761,000)
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|
20,835,000
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Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
administrative expenses
|
|
10,038,000
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|
13,224,000
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2,531,000
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2,499,000
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|
-
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(742,000)
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27,550,000
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Pension liability adjustment gains
|
|
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|
-
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|
-
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(4,148,000)
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|
|
(4,148,000)
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Operating (loss) income
|
$
|
(6,553,000)
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$
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(200,000)
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$
|
1,804,000
|
$
|
(1,747,000)
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$
|
4,148,000
|
$
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(19,000)
|
$
|
(2,567,000)
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|
|
|
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|
|
|
|
|
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Depreciation and amortization
|
$
|
1,819,000
|
$
|
658,000
|
$
|
189,000
|
$
|
88,000
|
$
|
-
|
$
|
-
|
$
|
2,754,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Capital expenditures
|
$
|
1,414,000
|
$
|
185,000
|
$
|
128,000
|
$
|
18,000
|
$
|
220,000
|
$
|
(19,000)
|
$
|
1,946,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transition
|
|
JDL
|
|
|
|
|
|
Intersegment
|
|
|
|
|
|
Suttle
|
|
Networks
|
|
Technologies
|
|
Net2Edge
|
|
Other
|
|
Eliminations
|
|
Total
|
|
Nine Months Ended September 30, 2015
|
|
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Sales
|
$
|
37,469,000
|
$
|
31,415,000
|
$
|
10,565,000
|
$
|
1,073,000
|
$
|
-
|
$
|
(533,000)
|
$
|
79,989,000
|
|
Cost of sales
|
|
30,682,000
|
|
17,485,000
|
|
7,648,000
|
|
453,000
|
|
-
|
|
(129,000)
|
|
56,139,000
|
|
Gross profit
|
|
6,787,000
|
|
13,930,000
|
|
2,917,000
|
|
620,000
|
|
-
|
|
(404,000)
|
|
23,850,000
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative expenses
|
|
11,680,000
|
|
14,284,000
|
|
2,722,000
|
|
2,546,000
|
|
-
|
|
(404,000)
|
|
30,828,000
|
|
Operating loss
|
$
|
(4,893,000)
|
$
|
(354,000)
|
$
|
195,000
|
$
|
(1,926,000)
|
$
|
-
|
$
|
-
|
$
|
(6,978,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
$
|
1,592,000
|
$
|
673,000
|
$
|
106,000
|
$
|
105,000
|
$
|
-
|
$
|
-
|
$
|
2,476,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
$
|
1,235,000
|
$
|
226,000
|
$
|
187,000
|
$
|
21,000
|
$
|
114,000
|
$
|
-
|
$
|
1,783,000
|
|