| Segment Information |
NOTE 10 – SEGMENT INFORMATION
The Company classifies its businesses into four segments as follows:
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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 that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment; and
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·
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Net2Edge develops, manufactures and sells products that enable 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.
Information concerning the Company’s continuing operations in the various segments for the three and six month periods ended June 30, 2017 and 2016 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 June 30, 2017
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Sales
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$
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8,580,000
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$
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9,500,000
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$
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4,026,000
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$
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180,000
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$
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-
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$
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(218,000)
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$
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22,068,000
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Cost of sales
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7,767,000
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5,206,000
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3,065,000
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40,000
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-
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(20,000)
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16,058,000
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Gross profit
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813,000
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4,294,000
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|
961,000
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140,000
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-
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(198,000)
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6,010,000
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Selling, general and
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administrative expenses
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2,325,000
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3,933,000
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557,000
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701,000
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-
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(198,000)
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7,318,000
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Impairment loss
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-
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-
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1,463,000
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|
154,000
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|
-
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|
-
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1,617,000
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Restructuring expense
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1,142,000
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-
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|
-
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-
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-
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-
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1,142,000
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Operating (loss) income
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$
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(2,654,000)
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$
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361,000
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$
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(1,059,000)
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$
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(715,000)
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$
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-
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$
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-
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$
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(4,067,000)
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Depreciation and amortization
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$
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579,000
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$
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173,000
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$
|
77,000
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$
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20,000
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$
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-
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$
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-
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$
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849,000
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Capital expenditures
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$
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25,000
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$
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25,000
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$
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3,000
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$
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43,000
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$
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4,000
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$
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-
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$
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100,000
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Assets
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$
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31,292,000
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$
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15,262,000
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$
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4,122,000
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$
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1,294,000
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$
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15,699,000
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$
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(27,000)
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$
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67,642,000
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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 June 30, 2016
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Sales
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$
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11,216,000
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$
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10,175,000
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$
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4,650,000
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$
|
591,000
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$
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-
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$
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(321,000)
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$
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26,311,000
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Cost of sales
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10,116,000
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5,773,000
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2,783,000
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314,000
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-
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(50,000)
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18,936,000
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Gross profit
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1,100,000
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4,402,000
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1,867,000
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|
277,000
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-
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(271,000)
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7,375,000
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Selling, general and
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administrative expenses
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3,661,000
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4,762,000
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961,000
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931,000
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-
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(268,000)
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10,047,000
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Operating (loss) income
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$
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(2,561,000)
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$
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(360,000)
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$
|
906,000
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$
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(654,000)
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$
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-
|
$
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(3,000)
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$
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(2,672,000)
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Depreciation and amortization
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$
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616,000
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$
|
232,000
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$
|
63,000
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$
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32,000
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$
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-
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$
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-
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$
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943,000
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Capital expenditures
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$
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342,000
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$
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75,000
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$
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9,000
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$
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2,000
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$
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40,000
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$
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(3,000)
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$
|
465,000
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Assets
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$
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39,811,000
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$
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19,798,000
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$
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5,911,000
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$
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1,670,000
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$
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18,782,000
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$
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(26,000)
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$
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85,946,000
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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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Six Months Ended June 30, 2017
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Sales
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$
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17,352,000
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$
|
18,504,000
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$
|
6,891,000
|
$
|
537,000
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$
|
-
|
$
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(416,000)
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$
|
42,868,000
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Cost of sales
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15,480,000
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|
10,325,000
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|
4,969,000
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|
140,000
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|
-
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(22,000)
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30,892,000
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Gross profit
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1,872,000
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|
8,179,000
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1,922,000
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|
397,000
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-
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(394,000)
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|
11,976,000
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Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
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administrative expenses
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4,536,000
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|
7,672,000
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|
1,133,000
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1,408,000
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-
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(394,000)
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|
14,355,000
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Impairment loss
|
|
-
|
|
-
|
|
1,463,000
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|
154,000
|
|
-
|
|
-
|
|
1,617,000
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|
Restructuring expense
|
|
1,530,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
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|
1,530,000
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Operating (loss) income
|
$
|
(4,194,000)
|
$
|
507,000
|
$
|
(674,000)
|
$
|
(1,165,000)
|
$
|
-
|
$
|
-
|
$
|
(5,526,000)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization
|
$
|
1,170,000
|
$
|
360,000
|
$
|
154,000
|
$
|
38,000
|
$
|
-
|
$
|
-
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$
|
1,722,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Capital expenditures
|
$
|
48,000
|
$
|
25,000
|
$
|
5,000
|
$
|
60,000
|
$
|
-
|
$
|
-
|
$
|
138,000
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
Transition
|
|
JDL
|
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|
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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
|
|
Other
|
|
Eliminations
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|
Total
|
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Six Months Ended June 30, 2016
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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
|
|