Segment Information

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Segment Information

Note 5— Segment Information

The Company reports financial information based on the organization structure used by management for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of (1) United States; (2) Canada and (3) Europe. The activities of the Company’s Asian operating segment are closely linked to those of the U.S. operating segment; accordingly, management reviews the financial results of both segments on a consolidated basis, and the results of the Asian operating segment have been aggregated with the results of the United States operating segment to form one reportable segment called the “United States operating segment”. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware and industrial use.

The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment amounts below are presented after converting to U.S. dollars and consolidating eliminations.

Financial data by segment:

(in thousands)

	Three months ended September 30,					Nine months ended September 30,
Sales to external customers:	2011		2010			2011			2010
United States	$	15,020	$	12,220		$	44,104		$	36,845
Canada		1,829		1,765			7,008			6,214
Europe		2,187		2,098			6,354			6,730
Consolidated	$	19,036	$	16,083		$	57,466		$	49,789
Operating income (loss):
United States	$	923	$	583		$	2,904		$	2,462
Canada		114		185			863			703
Europe		83		(111	)		(4	)		(262	)
Consolidated	$	1,120	$	657		$	3,763		$	2,903
Interest expense, net		70		47			191			105
Other expense (income), net		20		(3	)		(2	)		36
Consolidated income before taxes	$	1,030	$	613		$	3,574		$	2,762

Assets by segment:
(in thousands)
	September 30,		December 31,
	2011		2010
United States	$	43,319	$	37,685
Canada		5,899		6,205
Europe		6,126		5,691
Consolidated	$	55,344	$	49,581