Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has two reportable segments - Direct and Retail. Contribution is the measure of profit or loss used by the Company's chief operating decision maker and is defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Following is summary information by reportable segment for the three and nine months endedSeptember 30, 2012 and 2011 (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Net sales:
Direct	$	25,103		$	22,645		$	83,544		$	75,354
Retail	11,388			13,710			42,057			42,090
Unallocated royalty income	1,561			1,047			3,296			2,983
Consolidated net sales	$	38,052		$	37,402		$	128,897		$	120,427
Contribution:
Direct	$	1,947		$	161		$	5,968		$	1,339
Retail	827			1,319			4,182			4,420
Unallocated royalty income	1,561			1,047			3,296			2,983
Consolidated contribution	$	4,335		$	2,527		$	13,446		$	8,742
Reconciliation of consolidated contribution to income   (loss) from continuing operations:
Consolidated contribution	$	4,335		$	2,527		$	13,446		$	8,742
Less expenses not directly related to segments:
General and administrative	(3,637		)	(3,240		)	(10,518		)	(10,355		)
Other income (expense), net	(107		)	(176		)	(105		)	(317		)
Income tax benefit	625			1,170			554			1,136
Income (loss) from continuing operations	$	1,216		$	281		$	3,377		$	(794	)