Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.6
Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information

NOTE 9 – SEGMENT INFORMATION

Effective January 1, 2012, the Company realigned its business operations. As a result of the realignment, the Company consolidated the Austin Taylor operations within its Suttle business unit. Following this realignment, the Company classifies its businesses into three segments as follows:

 

 

 

 

•

Suttle manufactures and markets copper and fiber connectivity systems, enclosure systems, xDSL filters and splitters, and active technologies for voice, data and video communications;

 

•

Transition Networks manufactures network interface devices (NIDs), media converters, network interface cards (NICs), Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network; and

 

•

JDL Technologies provides technology solutions including virtualization, managed services, wired and wireless network design and implementation services, and converged infrastructure configuration and deployment.

Our non-allocated corporate general and administrative expenses are categorized as "Other" in the Company's segment reporting. Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. There are no material inter-segment revenues. To conform to the 2012 presentation, the Company has reclassified 2011 segment information to present the Austin Taylor operations within Suttle's business unit.

Information concerning the Company's continuing operations in the various segments for the three and six month periods ended June 30, 2012 and 2011 is as follows:

SEGMENT INFORMATION - THREE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended June 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,347,556

 

$

14,029,507

 

$

1,184,195

 

$

—

 

$

25,561,258

 

Cost of sales

 

 

7,850,557

 

 

6,228,019

 

 

826,799

 

 

—

 

$

14,905,375

 

Gross profit

 

 

2,496,999

 

 

7,801,488

 

 

357,396

 

 

—

 

 

10,655,883

 

Selling, general and
administrative expenses

 

 

2,205,227

 

$

5,569,837

 

 

529,147

 

 

994,070

 

$

9,298,281

 

Operating income (loss)

 

$

291,772

 

$

2,231,651

 

$

(171,751

)

$

(994,070

)

$

1,357,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

239,636

 

$

199,060

 

$

27,836

 

$

73,032

 

$

539,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

262,689

 

$

77,194

 

$

4,595

 

$

187,881

 

$

532,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at June 30, 2012

 

$

28,333,064

 

$

35,613,341

 

$

2,356,158

 

$

47,014,305

 

$

113,316,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended June 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

9,049,714

 

$

32,377,988

 

$

4,001,982

 

$

—

 

$

45,429,684

 

Cost of sales

 

 

7,009,544

 

 

17,839,905

 

 

2,124,650

 

 

—

 

 

26,974,099

 

Gross profit

 

 

2,040,170

 

 

14,538,083

 

 

1,877,332

 

 

—

 

 

18,455,585

 

Selling, general and
administrative expenses

 

 

1,922,708

 

 

5,896,959

 

 

488,125

 

 

1,622,968

 

 

9,930,760

 

Goodwill impairment

 

 

1,271,986

 

 

—

 

 

—

 

 

—

 

 

1,271,986

 

Operating income (loss)

 

$

(1,154,524

)

$

8,641,124

 

$

1,389,207

 

$

(1,622,968

)

$

7,252,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

256,880

 

$

174,606

 

$

28,818

 

$

74,614

 

$

534,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

355,388

 

$

159,554

 

$

1,324

 

$

9,043

 

$

525,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at June 30, 2011

 

$

23,207,387

 

$

46,946,405

 

$

3,936,889

 

$

41,940,702

 

$

116,031,383

 

 

SEGMENT INFORMATION - SIX MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Six months ended June 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

20,924,860

 

$

26,967,699

 

$

1,912,620

 

$

—

 

$

49,805,179

 

Cost of sales

 

 

15,526,519

 

 

12,356,855

 

 

1,317,295

 

 

—

 

$

29,200,669

 

Gross profit

 

 

5,398,341

 

 

14,610,844

 

 

595,325

 

 

—

 

 

20,604,510

 

Selling, general and
administrative expenses

 

 

4,573,668

 

 

11,192,074

 

 

1,114,115

 

 

2,236,606

 

$

19,116,463

 

Operating income (loss)

 

$

824,673

 

$

3,418,770

 

$

(518,790

)

$

(2,236,606

)

$

1,488,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

483,661

 

$

440,496

 

$

54,927

 

$

145,170

 

$

1,124,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

665,588

 

$

159,645

 

$

14,691

 

$

373,534

 

$

1,213,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Six months ended June 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

19,736,896

 

$

48,933,885

 

$

7,781,706

 

$

—

 

$

76,452,487

 

Cost of sales

 

 

14,972,262

 

 

25,419,133

 

 

4,277,018

 

 

—

 

$

44,668,413

 

Gross profit

 

 

4,764,634

 

 

23,514,752

 

 

3,504,688

 

 

—

 

 

31,784,074

 

Selling, general and
administrative expenses

 

 

4,042,899

 

 

11,229,352

 

 

1,000,945

 

 

2,844,774

 

$

19,117,970

 

Goodwill impairment

 

 

1,271,986

 

 

 

 

 

 

 

 

—

 

 

1,271,986

 

Operating income (loss)

 

$

(550,251

)

$

12,285,400

 

$

2,503,743

 

$

(2,844,774

)

$

11,394,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

485,794

 

$

341,761

 

$

57,306

 

$

149,279

 

$

1,034,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

597,389

 

$

351,105

 

$

11,375

 

$

9,043

 

$

968,912