Note H - Segment Information

6 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

H. Segment Information

Our business consists of three segments for financial reporting purposes. The three segments are identified as (i) private label contract manufacturing, which primarily relates to the provision of private label contract manufacturing services to companies that market and distribute nutritional supplements and other health care products,  (ii) patent and trademark licensing, which primarily includes royalty income from our license and supply agreements associated with the sale and use of beta-alanine under our CarnosSyn® trade name and the sale of beta-alanine raw material, and (iii) branded products, which relates to the marketing and distribution of our branded nutritional supplements and consists primarily of the products sold under our Pathway to Healing® product line.

We evaluate performance based on a number of factors. The primary performance measures for each segment are net sales and income or loss from operations before corporate allocations. Operating income or loss for each segment does not include corporate general and administrative expenses, interest expense and other miscellaneous income and expense items. Corporate general and administrative expenses include, but are not limited to: human resources, corporate legal, finance, information technology, and other corporate level related expenses, which are not allocated to any segment. The accounting policies of our segments are the same as those described in Note A above and in the consolidated financial statements included in our 2013 Annual Report.

Our operating results by business segment were as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
Net Sales
Private label contract manufacturing	$	15,044	$	12,524	$	30,364	$	27,268
Patent and trademark licensing		1,153		824		2,671		2,198
Branded products		278		338		595		680
	$	16,475	$	13,686	$	33,630	$	30,146

	Three Months Ended December 31,						Six Months Ended December 31,
	2013			2012			2013			2012
Income from Operations
Private label contract manufacturing	$	903		$	624		$	1,718		$	2,570
Patent and trademark licensing		497			171			929			318
Branded products		8			40			14			74
Income from operations of reportable segments		1,408			835			2,661			2,962
Corporate expenses not allocated to segments		(1,144	)		(1,108	)		(2,307	)		(2,206	)
	$	264		$	(273	)	$	354		$	756

	December 31, 2013		June 30, 2013
Total Assets
Private label contract manufacturing	$	45,755	$	45,032
Patent and trademark licensing		1,153		1,388
Branded products		317		220
	$	47,225	$	46,640

Our private label contract manufacturing products are sold both in the U.S. and in markets outside the U.S., including Europe, Canada, Mexico, Australia and Asia. Our primary market outside the U.S. is Europe. Our patent and trademark licensing activities are primarily based in the U.S. and our branded products are only sold in the U.S.

Net sales by geographic region, based on the customers’ location, were as follows (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
United States	$	8,215	$	8,173	$	17,702	$	17,804
Markets outside the United States		8,260		5,513		15,928		12,342
Total net sales	$	16,475	$	13,686	$	33,630	$	30,146

Products manufactured by NAIE accounted for approximately 49% of net sales in markets outside the U.S. for the three months ended December 31, 2013, and 74% for the three months ended December 31, 2012. NAIE accounted for 52% of net sales in markets outside the U.S. for the six months ended December 31, 2013, and 71% for the six months ended December 31, 2012. No products manufactured by NAIE were sold in the U.S. during the six months ended December 31, 2013 and 2012.

Assets and capital expenditures by geographic region, based on the location of the company or subsidiary at which they were located or made, were as follows (in thousands):

	Long-Lived Assets				Total Assets				Capital Expenditures
									Six Months Ended
	December 31,2013		June 30, 2013		December 31,2013		June 30, 2013		December 31,2013		December 31, 2012
United States	$	6,924	$	6,728	$	32,998	$	32,450	$	1,433	$	417
Europe		2,374		2,477		14,227		14,190		240		715
	$	9,298	$	9,205	$	47,225	$	46,640	$	1,673	$	1,132