Business Segment and Geographic Data

9 Months Ended

Sep. 30, 2012

Business Segment and Geographic Data [Abstract]

Business Segment and Geographic Data

Note 13

Business Segments and Geographic Data:

Effective December 13, 2011, the Company reorganized its business into three operating units to better align its organization based upon the Company's management structure, products and services offered, markets served and types of customers, as follows: The Consumer segment derives its revenues from the design, development, manufacturing and selling of long-term hair reduction and acne consumer products. The Physician Recurring segment derives its revenues from the XTRAC procedures performed by dermatologists, the sales of skincare products, the sales of surgical disposables and accessories to hospitals and surgery centers and on the repair, maintenance and replacement parts on our various products. The Professional segment, in comparison, generates revenues from the sale of equipment, such as lasers, medical and aesthetic light and heat-based products and LED products. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance.

Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses.

The following tables reflect results of operations from our business segments for the periods indicated below:

Three Months Ended September 30, 2012

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	49,638		$	5,121		$	1,922		$	56,681
Costs of revenues		7,366			2,811			1,104			11,281
Gross profit		42,272			2,310			818			45,400
Gross profit %		85.2	%		45.1	%		42.6	%		80.1	%
Allocated operating expenses:
Engineering and product development		165			278			185			628
Selling and marketing expenses		24,980			2,575			730			28,285
Unallocated operating expenses		-			-			-			6,231
		25,145			2,853			915			35,144
Income (loss) from operations		17,127			(543	)		(97	)		10,256
Interest  and other financing income (expense), net		-			-			-			(231	)
Net income (loss) before taxes	$	17,127		$	( 543	)	$	( 97	)	$	10,025

Three Months Ended September 30, 2011

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	33,632		$	-		$	1,113		$	34,745
Costs of revenues		7,719			-			423			8,142
Gross profit		25,913			-			690			26,603
Gross profit %		77.0	%		-	%		61.8	%		76.6	%
Allocated operating expenses:
Engineering and product development		245			-			36			281
Selling and marketing expenses		14,906			-			562			15,468
Unallocated operating expenses		-			-			-			4,540
		15,151			-			598			20,289
Income from operations		10,762			-			92			6,314
Interest and other financing income (expense), net		-			-			-			(91	)
Net income before taxes	$	10,762		$	-		$	92		$	6,223

Nine Months Ended September 30, 2012

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	142,303		$	15,467		$	8,090		$	165,860
Costs of revenues		22,307			8,095			4,468			34,870
Gross profit		119,996			7,372			3,622			130,990
Gross profit %		84.3	%		47.7	%		44.8	%		79.0	%
Allocated operating expenses:
Engineering and product development		642			863			641			2,146
Selling and marketing expenses		74,673			7,526			2,989			85,188
Unallocated operating expenses		-			-			-			22,593
		75,315			8,389			3,630			109,927
Income (loss) from operations		44,681			(1,017	)		(8	)		21,063
Interest  and other financing income (expense), net		-			-			-			(862	)
Net income (loss) before taxes	$	44,681		$	( 1,017	)	$	( 8	)	$	20,201

Nine Months Ended September 30, 2011

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	99,718		$	-		$	3,615		$	103,333
Costs of revenues		18,721			-			1,333			20,054
Gross profit		80,997			-			2,282			83,279
Gross profit %		81.2	%		-	%		62.8	%		80.6	%
Allocated operating expenses:
Engineering and product development		584			-			116			700
Selling and marketing expenses		43,963			-			1,542			45,505
Unallocated operating expenses		-			-			-			36,279
		44,547			-			1,658			82,484
Income from operations		36,450			-			624			795
Interest and other financing income (expense), net		-			-			-			101
Net income before taxes	$	36,450		$	-		$	624		$	896

For the three and nine months ended September 30, 2012 and 2011, net revenues by geographic area were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
North America 1	$	38,888	$	23,958	$	121,524	$	71,807
Asia Pacific 2		9,533		8,538		23,306		25,349
Europe (including Israel)		7,170		1,964		18,623		4,947
South America		1,090		285		2,407		1,230
	$	56,681	$	34,745	$	165,860	$	103,333
1 United States	$	31,380	$	18,952	$	101,473	$	60,888
2  Japan	$	8,144	$	8,373	$	18,318	$	23,929

For the three and nine months ended September 30, 2012 and 2011, long-lived assets by geographic area were as follows:

	September 30,
	2012		2011
North America	$	5,206	$	-
Asia Pacific		-		-
Europe (including Israel)		787		791
South America		-		-
	$	5,993	$	791

The Company discusses segmental details in its Management Discussion and Analysis found elsewhere in this Quarterly Report on Form 10-Q.