Note 12 - Business Segment, Geographic and Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

12.    BUSINESS SEGMENT, GEOGRAPHIC AND QUARTERLY FINANCIAL DATA

Business Segment Financial Data

Fuel Tech segregates its financial results into two reportable segments representing two broad technology segments as follows:

- The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources.   These include Low and Ultra Low NOx Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NOxOUT® and HERT™ Selective Non-Catalytic Reduction (SNCR) systems, and Advanced Selective Catalytic Reduction (ASCRTM) systems.  The ASCR system includes ULNB, OFA, and SNCR components, along with a downsized SCR catalyst, Ammonia Injection Grid (AIG), and Graduated Straightening Grid GSG™ systems to provide high NOx reductions at significantly lower capital and operating costs than conventional SCR systems.  The NOxOUT CASCADE® and NOxOUT-SCR® processes are basic types of ASCR systems, using just SNCR and SCR catalyst components.  ULTRA™ technology creates ammonia at a plant site using safe urea for use with any SCR application.  Flue Gas Conditioning systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions.

- The FUEL CHEM® technology segment, which uses chemical processes in combination with advanced CFD and CKM boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI® Targeted In-Furnace Injection™ technology.

The “Other” classification includes those profit and loss items not allocated by Fuel Tech to each reportable segment.  Further, there are no intersegment sales that require elimination.

Fuel Tech evaluates performance and allocates resources based on reviewing gross margin by reportable segment.  The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.  Fuel Tech does not review assets by reportable segment, but rather, in aggregate for Fuel Tech as a whole.

Information about reporting segment net sales and gross margin are provided below:

For the year ended December 31, 2012	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	62,441		$	35,203		$	-		$	97,644
Cost of sales		(40,146	)		(16,753	)		-			(56,899	)
Gross margin		22,295			18,450			-			40,745
Selling, general and administrative		-			-			(32,682	)		(32,682	)
Research and development		-			-			(2,863	)		(2,863	)
Operating income (loss)	$	22,295		$	18,450		$	(35,545	)	$	5,200

For the year ended December 31, 2011	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	50,930		$	42,738		$	-		$	93,668
Cost of sales		(28,467	)		(21,390	)		-			(49,857	)
Gross margin		22,463			21,348			-			43,811
Selling, general and administrative		-			-			(33,446	)		(33,446	)
Gain from revaluation of ACT liability		-			-			758			758
Research and development		-			-			(1,474	)		(1,474	)
Operating income (loss)	$	22,463		$	21,348		$	(34,162	)	$	9,649

For the year ended December 31, 2010	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	40,917		$	40,878		$	-		$	81,795
Cost of sales		(27,024	)		(19,797	)		-			(46,821	)
Gross margin		13,893			21,081			-			34,974
Selling, general and administrative		-			-			(30,857	)		(30,857	)
Gain from revaluation of ACT liability		-			-			768			768
Research and development		-			-			(948	)		(948	)
Operating income (loss)	$	13,893		$	21,081		$	(31,037	)	$	3,937

Geographic Segment Financial Data

Information concerning Fuel Tech’s operations by geographic area is provided below.  Revenues are attributed to countries based on the location of the customer.  Assets are those directly associated with operations of the geographic area.

For the years ended December 31,	2012		2011		2010
Revenues:
United States	$	70,425	$	76,077	$	69,002
Foreign		27,219		17,591		12,793
	$	97,644	$	93,668	$	81,795

As of December 31,		2012		2011
Assets:
United States	$	86,466	$	99,601
Foreign		19,431		13,389
	$	105,897	$	112,990

Unaudited Quarterly Financial Data

Set forth below are the unaudited quarterly financial data for the fiscal years ended December 31, 2012 and 2011.

For the quarters ended	March 31		June 30		September 30		December 31
2012
Revenues	$	25,212	$	20,911	$	24,907	$	26,614
Cost of sales		13,220		11,880		14,671		17,128
Net income (loss)		1,543		68		1,194		(29	)
Net income (loss) per common share:
Basic	$	0.07	$	0.00	$	0.05	$	0.00
Diluted	$	0.06	$	0.00	$	0.05	$	0.00
2011
Revenues	$	22,622	$	19,021	$	24,023	$	28,002
Cost of sales		11,466		10,553		13,050		14,788
Net income (loss)		1,339		430		2,655		1,724
Net income (loss) per common share:
Basic	$	0.06	$	0.02	$	0.11	$	0.07
Diluted	$	0.05	$	0.02	$	0.11	$	0.07