| Segment Information |
NOTE 9 – SEGMENT INFORMATION
Effective January 1, 2014, the Company realigned the financial reporting for its business units. As a result of this realignment, all corporate general and administrative expenses that were previously categorized as “Other” are now included within the three business units as fully allocated costs. The Company classifies its businesses into three segments as follows:
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Suttle manufactures and markets copper and fiber connectivity systems, enclosure systems, xDSL filters and splitters, and active technologies for voice, data and video communications;
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·
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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
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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.
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Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. There are no material inter-segment revenues. In order to conform to the 2014 presentation, the Company has reclassified the previously non-allocated Corporate expenses within the business segments.
Information concerning the Company’s continuing operations in the various segments for the three and six-month periods ended June 30, 2014 and 2013 is as follows:
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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Three Months Ended June 30, 2014
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Sales
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$
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19,006,243
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$
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11,567,320
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$
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2,635,414
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$
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-
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$
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33,208,977
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Cost of sales
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12,731,061
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6,181,697
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2,202,451
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-
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21,115,209
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Gross profit
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6,275,182
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5,385,623
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432,963
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-
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12,093,768
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Selling, general and
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administrative expenses
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3,358,171
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5,609,011
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721,065
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-
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9,688,247
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Operating income (loss)
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$
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2,917,011
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$
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(223,388)
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$
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(288,102)
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$
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-
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$
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2,405,521
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Depreciation and amortization
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$
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314,797
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$
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230,704
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$
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37,149
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$
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-
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$
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582,650
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Capital expenditures
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$
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1,294,590
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$
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251,444
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$
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8,260
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$
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117,536
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$
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1,671,830
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Assets
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$
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38,303,760
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$
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27,507,378
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$
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3,519,924
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$
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34,467,640
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$
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103,798,702
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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Three Months Ended June 30, 2013
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Sales
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$
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13,852,329
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$
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10,461,771
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$
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7,622,502
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$
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-
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$
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31,936,602
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Cost of sales
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9,990,159
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4,786,724
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5,631,402
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-
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20,408,285
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Gross profit
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3,862,170
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5,675,047
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1,991,100
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-
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11,528,317
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Selling, general and
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administrative expenses
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2,726,835
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5,571,975
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662,657
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-
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8,961,467
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Operating income (loss)
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$
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1,135,335
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$
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103,072
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$
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1,328,443
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$
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-
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$
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2,566,850
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Depreciation and amortization
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$
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275,969
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$
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249,211
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$
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47,681
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$
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-
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$
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572,861
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Capital expenditures
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$
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274,380
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$
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369,621
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$
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-
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$
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183,451
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$
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827,452
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Assets
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$
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27,557,698
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$
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32,332,555
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$
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18,835,913
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$
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31,285,653
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$
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110,011,819
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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Six Months Ended June 30, 2014
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Sales
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$
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31,888,574
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$
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21,316,701
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$
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5,202,108
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$
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-
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$
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58,407,383
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Cost of sales
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22,123,196
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11,224,667
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3,977,735
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-
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37,325,598
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Gross profit
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9,765,378
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10,092,034
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1,224,373
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-
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21,081,785
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Selling, general and
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administrative expenses
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6,495,819
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10,788,770
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1,405,769
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-
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18,690,358
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Restructuring expense
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237,838
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-
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237,838
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Operating income (loss)
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$
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3,269,559
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$
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(934,574)
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$
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(181,396)
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$
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-
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$
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2,153,589
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Depreciation and amortization
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$
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607,968
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$
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461,418
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$
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73,886
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$
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-
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$
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1,143,272
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Capital expenditures
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$
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1,921,501
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$
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358,857
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$
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18,016
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$
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197,089
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$
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2,495,463
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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Six Months Ended June 30, 2013
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Sales
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$
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26,264,517
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$
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21,274,892
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$
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11,849,924
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$
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-
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$
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59,389,333
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Cost of sales
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19,086,842
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9,879,015
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9,119,232
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-
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38,085,089
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Gross profit
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7,177,675
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11,395,877
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2,730,692
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-
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21,304,244
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Selling, general and
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administrative expenses
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5,355,078
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11,616,634
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1,394,904
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-
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18,366,616
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Operating income (loss)
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$
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1,822,597
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$
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(220,757)
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$
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1,335,788
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$
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-
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$
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2,937,628
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Depreciation and amortization
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$
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519,322
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$
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460,165
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$
|
79,167
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$
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-
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$
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1,058,654
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Capital expenditures
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$
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438,782
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$
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500,975
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$
|
15,361
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$
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351,463
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$
|
1,306,581
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