Operating Segments and Related Information

12 Months Ended

Dec. 31, 2012

Operating Segments and Related Information [Abstract]

Segment Reporting Disclosure [Text Block]

Operating Segments and Related Information

The Company's operations are focused on two primary business areas:  Spire Solar (comprised of solar equipment, solar systems, solar materials and solar research) and Spire Biomedical (comprised of biomedical surface treatments and biophotonics research).  Spire Solar and Spire Biomedical operate out of the Company's facility in Bedford, Massachusetts. Each business area is independently managed and has separate financial results that are reviewed by the Board of Directors and Chief Executive Officer and the chief executive officers of each operating division.

During the first quarter of 2012, the Company began pursuing an exclusive sales process of our semiconductor business and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo Corporation. The Company reported the Semiconductor Business Unit as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2012. The Semiconductor Business Unit was previously reported as our optoelectronics segment. The Company's results of operations for all periods prior to fiscal 2012 presented in our consolidated financial statements have been restated to account for the Semiconductor Business Unit (optoelectronics segment) as discontinued operations. Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations. See Note 17 to the consolidated financial statements.

During the second quarter of 2009, the Company began pursuing an exclusive sales process of our medical products business and, on December 14, 2009, the Company completed the sale the Medical Products Business Unit to Bard Access Systems, Inc. The Company reported the Medical Products Business Unit as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2009. The Medical Products Business Unit was previously part of our biomedical segment. Accordingly, the results of operations and liabilities of the Medical Products Business Unit are being presented herein as discontinued operations. See Note 17 to the consolidated financial statements.

The following table presents certain operating division information in accordance with the provisions of ASC 280, Segment Reporting.

(in thousands)	Spire Solar			Spire Biomedical		Corporate		Total Company
December 31, 2012
Net sales and revenues	$	15,255		$	6,855	$	—	$	22,110
Operating income (loss) from continuing operations	(7,280		)	677		—		(6,603		)
Total assets	7,757			1,499		6,651		15,907
Capital expenditures	83			8		52		143
Depreciation and amortization	369			208		227		804
Share-based compensation	61			43		98		202
	Spire Solar			Spire Biomedical		Corporate		Total Company
December 31, 2011
Net sales and revenues	$	50,957		$	7,785	$	—	$	58,742
Operating income (loss) from continuing operations	(2,346		)	1,503		—		(843		)
Total assets	11,229			1,787		8,475		21,491
Capital expenditures	90			—		107		197
Depreciation and amortization	355			356		328		1,039
Share-based compensation	129			45		171		345

Operating income (loss) from continuing operations is net sales less cost of sales, selling, general and administrative expenses and gain on termination of contracts, but is not affected by non-operating income (expense), by income taxes or by net income (loss) from discontinued operations. In calculating operating income (loss) from continuing operations for individual business units, substantial administrative expenses incurred at the operating level that are common to more than one segment are allocated on a net sales basis. Certain corporate expenses of an operational nature are also allocated to the divisions based on factors including occupancy, employment, and purchasing volume. All intercompany transactions have been eliminated.

The following table shows net sales and revenues by geographic area (based on customer location) for the years ended December 31:

(in thousands)	2012		%		2011		%
United States	$	10,436	47	%	$	29,827	51	%
Asia	7,971		36	%	21,666		37	%
Europe / Africa	3,628		17	%	5,258		9	%
Rest of the world	75		—	%	1,991		3	%
	$	22,110	100	%	$	58,742	100	%

Revenues from contracts with United States government agencies for 2012 and 2011 were approximately $1.8 million and $8.6 million, or 8% and 15% of consolidated net sales and revenues, respectively.

Revenues from the delivery of solar equipment to First Solar, Inc. and revenues from the delivery of biomedical services to Stryker Orthopedics accounted for 12% and 14%, respectively, of total net sales and revenues for 2012.

Revenues from the delivery of solar equipment to Servo Dynamics Co., Ltd. and First Solar, Inc. accounted for 16% and 11%, respectively, of total net sales and revenues for 2011. Revenues from the delivery of a solar photovoltaic system to PPS Berkshire Solar LLC accounted for 13% of total net sales and revenues for 2011. Revenues from the delivery of solar equipment and recurring revenues from the sale of solar cell materials to Federal Prison Industries, Inc. accounted for 1% and 12%, respectively, of total net sales and revenues for 2011.

One customer represented approximately 24% of net accounts receivable, trade at December 31, 2012 and three customers represented approximately 19%, 12% and 10% of net accounts receivable, trade at December 31, 2011.

Republic of India was the only foreign country that accounted for more than 10% of sales in 2012 and Republic of Singapore was the only foreign country that accounted for more than 10% of sales in 2011. Net sales to customers in Republic of India accounted for $2.8 million in 2012 and net sales to customers in Republic of Singapore accounted for $8.2 million in 2011.