Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Information [Abstract]  
Segment Information NOTE 12 – SEGMENT INFORMATION

The Company classifies its businesses into two segments as follows:

Electronics & Software: designs, develops and sells Intelligent Edge solutions that provide connectivity and power through PoE products and actionable intelligence to end devices in an IoT ecosystem through embedded and cloud-based management software. In addition, this segment continues to generate revenue from its traditional products consisting of media converters, NICs, and Ethernet switches that offer the ability to affordably integrate the benefits of fiber optics into any data network; and

Services & Support: provides technology solutions that address prevalent IT challenges, including network resiliency, security products and services, network virtualization, and cloud migrations, IT managed services, wired and wireless network design and implementation, and converged infrastructure configuration, deployment and management.

Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. “Other” includes non-allocated corporate overhead costs. As a result of our treatment of Suttle as discontinued operations, “Other” includes amounts previously allocated to Suttle that do not meet the criteria to be included in income from discontinued operations.

Information concerning the Company’s continuing operations in these two segments for the three-month periods ended June 30, 2021 and 2020 are as follows:

Electronics &

Services &

Intersegment

Software

Support

Other

Eliminations

Total

Three Months Ended June 30, 2021

Sales

$

9,307,000

$

1,833,000

$

—

$

(143,000)

$

10,997,000

Cost of sales

5,204,000

1,185,000

—

—

6,389,000

Gross profit

4,103,000

648,000

—

(143,000)

4,608,000

Selling, general and

administrative expenses

3,592,000

878,000

663,000

(143,000)

4,990,000

Transaction costs

—

—

1,279,000

—

1,279,000

Operating income (loss)

511,000

(230,000)

(1,942,000)

—

(1,661,000)

Other (expense) income

(38,000)

16,000

(257,000)

—

(279,000)

Income (loss) before income tax

$

473,000

$

(214,000)

$

(2,199,000)

$

—

$

(1,940,000)

Depreciation and amortization

$

68,000

$

139,000

$

38,000

$

—

$

245,000

Capital expenditures

$

—

$

1,000

$

—

$

—

$

1,000

Assets

$

14,819,000

$

7,624,000

$

29,581,000

$

(27,000)

$

51,997,000

Electronics &

Services &

Intersegment

Software

Support

Other

Eliminations

Total

Three Months Ended June 30, 2020

Sales

$

8,287,000

$

1,525,000

$

—

$

(184,000)

$

9,628,000

Cost of sales

5,192,000

982,000

—

(26,000)

6,148,000

Gross profit

3,095,000

543,000

—

(158,000)

3,480,000

Selling, general and

administrative expenses

3,638,000

483,000

769,000

(158,000)

4,732,000

Transaction costs

—

—

394,000

—

394,000

Operating (loss) income

(543,000)

60,000

(1,163,000)

—

(1,646,000)

Other income

3,000

—

276,000

—

279,000

(Loss) income before income tax

$

(540,000)

$

60,000

$

(887,000)

$

—

$

(1,367,000)

Depreciation and amortization

$

76,000

$

19,000

$

123,000

$

—

$

218,000

Capital expenditures

$

24,000

$

—

$

8,000

$

—

$

32,000

Assets

$

16,825,000

$

6,569,000

$

33,984,000

$

(27,000)

$

57,351,000

Electronics &

Services &

Intersegment

Software

Support

Other

Eliminations

Total

Six Months Ended June 30, 2021

Sales

$

17,671,000

$

3,772,000

$

—

$

(287,000)

$

21,156,000

Cost of sales

9,985,000

2,347,000

—

—

12,332,000

Gross profit

7,686,000

1,425,000

—

(287,000)

8,824,000

Selling, general and

administrative expenses

7,200,000

1,857,000

1,391,000

(287,000)

10,161,000

Transaction costs

—

—

2,471,000

—

2,471,000

Operating income (loss)

486,000

(432,000)

(3,862,000)

—

(3,808,000)

Other (expense) income

(57,000)

16,000

(251,000)

—

(292,000)

Income (loss) before income tax

$

429,000

$

(416,000)

$

(4,113,000)

$

—

$

(4,100,000)

Depreciation and amortization

$

135,000

$

293,000

$

77,000

$

—

$

505,000

Capital expenditures

$

4,000

$

6,000

$

—

$

—

$

10,000

Electronics &

Services &

Intersegment

Software

Support

Other

Eliminations

Total

Six Months Ended June 30, 2020

Sales

$

16,823,000

$

2,352,000

$

—

$

(384,000)

$

18,791,000

Cost of sales

9,999,000

1,602,000

—

(27,000)

11,574,000

Gross profit

6,824,000

750,000

—

(357,000)

7,217,000

Selling, general and

administrative expenses

7,535,000

811,000

1,683,000

(357,000)

9,672,000

Transaction costs

—

—

415,000

—

415,000

Operating loss

(711,000)

(61,000)

(2,098,000)

—

(2,870,000)

Other income (expense)

17,000

—

673,000

—

690,000

Loss before income tax

$

(694,000)

$

(61,000)

$

(1,425,000)

$

—

$

(2,180,000)

Depreciation and amortization

$

147,000

$

32,000

$

251,000

$

—

$

430,000

Capital expenditures

$

68,000

$

1,000

$

20,000

$

—

$

89,000