Business Segments, Significant Customer and Geographic Information

12 Months Ended

Mar. 31, 2012

Business Segments, Significant Customer and Geographic Information

Business Segments, Significant Customer and Geographic Information

13.Business Segments, Significant Customer and Geographic Information

Business Segments

As a result of the sale of substantially all of the assets used in connection with our Vehicle Sensors segment to Bendix in July 2011 (see Note 3), along with a reevaluation and reorganization of our operating segments in the first quarter of our fiscal year ended March 31, 2012, we now operate in two reportable segments: Roadway Sensors and Transportation Systems.

The Roadway Sensors segment includes, among other products, our Vantage, Versicam, Pico, Vantage Vector and Abacus vehicle detection systems for traffic intersection control, incident detection and certain highway traffic data collection applications.

The Transportation Systems segment includes transportation engineering and consulting services and the development of transportation management and traveler information systems for the ITS industry. This segment includes the operations of MET, which specializes in 511 advanced traveler information systems and offers Maintenance Decision Support System management tools that allow users to create solutions to meet roadway maintenance decision needs. Also included in this segment are the operations of BTS, which specializes in transportation performance measurement.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1). Certain corporate expenses, including interest and amortization of intangible assets, are not allocated to the segments. Unallocated corporate expenses in the current fiscal year also include costs related to the sale of our Vehicle Sensors segment and certain other corporate initiatives, as well as costs related to our recently announced iPerform information management solution. The reportable segments are each managed separately because they manufacture and distribute distinct products or provide services with different processes. All reported segment revenues are derived from external customers.

Selected financial information for our reportable segments for the fiscal years ended March 31, 2012, 2011 and 2010 is as follows:

	Roadway Sensors		Transportation Systems			Total
	(In thousands)
Year Ended March 31, 2012
Product revenue	$	27,679	$	—		$	27,679
Service and other revenue	—		30,727			30,727
Depreciation	194		393			587
Segment income	2,826		1,284			4,110
Year Ended March 31, 2011
Product revenue	$	28,208	$	—		$	28,208
Service and other revenue	—		23,758			23,758
Depreciation	217		250			467
Impairment of goodwill	—		7,970			7,970
Segment income (loss)	3,942		(7,540		)	(3,598		)
Year Ended March 31, 2010
Product revenue	$	25,341	$	—		$	25,341
Service and other revenue	—		26,413			26,413
Depreciation	234		221			455
Segment income	3,158		1,445			4,603

The following table reconciles total segment income (loss) to consolidated income (loss) from continuing operations before income taxes:

	Year Ended March 31,
	2012			2011			2010
Segment income (loss):
Total income (loss) from reportable segments	$	4,110		$	(3,598	)	$	4,603
Unallocated amounts:
Corporate and other expenses	(2,208		)	(913		)	(916		)
Amortization of intangible assets	(504		)	(176		)	(113		)
Change in fair value of contingent acquisition consideration	619			(55		)	—
Other income, net	4			18			44
Interest expense, net	(72		)	(152		)	(264		)
Income (loss) from continuing operations before income taxes	$	1,949		$	(4,876	)	$	3,354

Fiscal 2012 corporate and other expense includes legal and accounting expenses related to the sale of the Vehicle Sensors segment in July 2011 as well as certain other costs incurred in connection with the development of IterisPeMS and certain corporate general and administrative expenses allocated to the Vehicle Sensors segment in prior fiscal years.

Significant Customer and Geographic Information

No single customer accounted for more than 10% of our total net sales and contract revenues for each of the fiscal years ended March 31, 2012, 2011 and 2010.

No individual customer or government agency had a receivable balance at March 31, 2012 or 2011 greater than 10% of our total trade accounts receivable balances as of March 31, 2012 and 2011, respectively.

The following table sets forth the percentages of our total net sales and contract revenues, by geographic region, derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.:

	Year Ended March 31,
	2012		2011		2010
Europe	—	%	5	%	4	%
Asia	1		5		2
Other	1		3		2
	2	%	13	%	8	%

Substantially all of our long-lived assets are held in the U.S.