Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.6
Segment Information
 9 Months Ended
Sep. 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 nine month periods ended September 30, 2012 and 2011 is as follows:

SEGMENT INFORMATION - THREE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

12,242,334

 

$

13,647,047

 

$

2,798,306

 

$

—

 

$

28,687,687

 

Cost of sales

 

 

8,915,366

 

 

6,983,935

 

 

2,028,513

 

 

—

 

$

17,927,814

 

Gross profit

 

 

3,326,968

 

 

6,663,112

 

 

769,793

 

 

—

 

 

10,759,873

 

Selling, general and
administrative expenses

 

 

2,318,165

 

$

5,365,325

 

 

564,401

 

 

805,273

 

$

9,053,164

 

Operating income (loss)

 

$

1,008,803

 

$

1,297,787

 

$

205,392

 

$

(805,273

)

$

1,706,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

216,232

 

$

198,411

 

$

25,798

 

$

72,192

 

$

512,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

292,674

 

$

117,695

 

$

9,545

 

$

414,399

 

$

834,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2012

 

$

28,126,173

 

$

36,413,632

 

$

2,562,750

 

$

44,181,073

 

$

111,283,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,538,277

 

$

27,573,925

 

$

3,872,368

 

$

—

 

$

41,984,570

 

Cost of sales

 

 

8,179,936

 

 

14,845,981

 

 

2,403,383

 

 

—

 

 

25,429,300

 

Gross profit

 

 

2,358,341

 

 

12,727,944

 

 

1,468,985

 

 

—

 

 

16,555,270

 

Selling, general and
administrative expenses

 

 

2,127,711

 

 

6,017,085

 

 

522,104

 

 

1,404,508

 

 

10,071,408

 

Goodwill impairment

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Operating income (loss)

 

$

230,630

 

$

6,710,859

 

$

946,881

 

$

(1,404,508

)

$

6,483,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

257,965

 

$

184,712

 

$

23,621

 

$

70,984

 

$

537,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

284,337

 

$

348,129

 

$

4,572

 

$

29,942

 

$

666,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2011

 

$

24,838,494

 

$

38,084,903

 

$

2,616,360

 

$

51,173,848

 

$

116,713,605

 

 

SEGMENT INFORMATION - NINE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

33,167,194

 

$

40,614,746

 

$

4,710,926

 

$

—

 

$

78,492,866

 

Cost of sales

 

 

24,441,885

 

 

19,340,790

 

 

3,345,808

 

 

—

 

$

47,128,483

 

Gross profit

 

 

8,725,309

 

 

21,273,956

 

 

1,365,118

 

 

—

 

 

31,364,383

 

Selling, general and
administrative expenses

 

 

6,891,833

 

 

16,557,399

 

 

1,678,516

 

 

3,041,879

 

$

28,169,627

 

Operating income (loss)

 

$

1,833,476

 

$

4,716,557

 

$

(313,398

)

$

(3,041,879

)

$

3,194,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

699,893

 

$

638,907

 

$

80,725

 

$

217,362

 

$

1,636,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

958,262

 

$

277,340

 

$

24,236

 

$

787,933

 

$

2,047,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

30,275,173

 

$

76,507,810

 

$

11,654,074

 

$

—

 

$

118,437,057

 

Cost of sales

 

 

23,152,198

 

 

40,265,114

 

 

6,680,401

 

 

—

 

$

70,097,713

 

Gross profit

 

 

7,122,975

 

 

36,242,696

 

 

4,973,673

 

 

—

 

 

48,339,344

 

Selling, general and
administrative expenses

 

 

6,170,610

 

 

17,246,437

 

 

1,523,049

 

 

4,249,282

 

$

29,189,378

 

Goodwill impairment

 

 

1,271,986

 

 

 

 

 

—

 

 

 

 

 

1,271,986

 

Operating income (loss)

 

$

(319,621

)

$

18,996,259

 

$

3,450,624

 

$

(4,249,282

)

$

17,877,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

743,759

 

$

526,474

 

$

80,927

 

$

220,263

 

$

1,571,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

881,726

 

$

699,235

 

$

15,947

 

$

38,985

 

$

1,635,893