Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

8.     Segment Information

The Company's businesses are organized, managed and internally reported as four operating segments.   In the second quarter of 2011, the Company acquired ExtraDev for its DSS Digital Group and the Company launched a new corporate identity and logo, along with a new website that grouped the Company under four distinct divisions. In conjunction with this, the Company determined that an expansion of its segment reporting to align with the new internal structure was appropriate. A summary of the four reportable segments follows:

DSS Printing	Licenses security printing technologies and manufactures and sells secure documents such as vital records, transcripts, safety paper, secure coupons, voter ballots, event tickets, among others.   In addition, sells general commercial printing services utilizing digital and offset printing capabilities.
DSS Plastics	Manufactures and sells secure and non-secure plastic printed products such as ID cards, event badges and passes, and loyalty and gift cards, among others.    Plastic cards include RFID chips, magnetic strips with variable data, and high quality graphics with overt and covert security features.
DSS Packaging	Manufactures and sells secure and non-secure custom paperboard packaging serving clients in the pharmaceutical, beverage, photo packaging, toy, specialty foods and direct marketing industries, among others.
DSS Digital	Develops, installs, hosts and services IT services including remote server and application hosting, cloud computing, secure document systems, back-up and disaster recovery services and customer program development services.

Approximate information concerning the Company’s operations by reportable segment for the three and six months ended June 30, 2012 and 2011 is as follows. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein:

Three months ended June 30, 2012	DSS Printing			DSS Plastics		DSS Packaging			DSS Digital			Corporate			Total
Revenues from external customers	$	1,056,000		$	799,000	$	1,574,000		$	230,000		$	-		$	3,659,000
Revenue from other operating segments		135,000			-		79,000			-			-			214,000
Depreciation and amortization		37,000			44,000		97,000			19,000			1,000			198,000
Net income (loss)		(72,000	)		43,000		(35,000	)		(74,000	)		(857,000	)		(995,000	)

Three months ended June 30, 2011	DSS Printing			DSS Plastics			DSS Packaging			DSS Digital			Corporate			Total
Revenues from external customers	$	960,000		$	637,000		$	1,183,000		$	96,000		$	-		$	2,876,000
Revenue from other operating segments		119,000			-			-			-			-			119,000
Depreciation and amortization		35,000			44,000			86,000			5,000			1,000			171,000
Net loss		(576,000	)		(6,000	)		(99,000	)		(23,000	)		(408,000	)		(1,112,000	)

Six months ended June 30, 2012	DSS Printing			DSS Plastics		DSS Packaging		DSS Digital			Corporate			Total
Revenues from external customers	$	1,873,000		$	1,479,000	$	3,670,000	$	480,000		$	-		$	7,502,000
Revenue from other operating segments		278,000			-		79,000		-			-			357,000
Depreciation and amortization		74,000			88,000		194,000		33,000			2,000			391,000
Net income (loss)		(252,000	)		9,000		33,000		(107,000	)		(1,752,000	)		(2,069,000	)
Identifiable assets		2,274,000			2,092,000		7,225,000		935,000			1,178,000			13,704,000

Six months ended June 30, 2011	DSS Printing			DSS Plastics		DSS Packaging			DSS Digital			Corporate			Total
Revenues from external customers	$	1,915,000		$	1,330,000	$	2,220,000		$	96,000		$	-		$	5,561,000
Revenue from other operating segments		389,000			-		-			-			-			389,000
Depreciation and amortization		74,000			99,000		173,000			5,000			1,000			352,000
Net income (loss)		(864,000	)		21,000		(171,000	)		(23,000	)		(473,000	)		(1,510,000	)
Identifiable assets		2,124,000			2,122,000		5,766,000			761,000			1,350,000			12,123,000