OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2011

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 6 — OPERATING SEGMENTS

The Company has two reportable operating segments: electronic devices and communications equipment. The electronic devices segment manufactures and markets electronic power supplies, RF and microwave devices and subsystem assemblies. The electronic devices segment consists of the Company’s two electronic device subsidiaries located in England, both of which offer the same or similar products to the same or similar customers.  The communications equipment segment designs, manufactures and distributes network access products and timing and synchronization products.  The communications equipment segment consists of operating entities CXR Larus Corporation (“CXR Larus”), which is located in the U.S., and CXR Anderson Jacobson (“CXR AJ”), which is located in France, both of which offer the same or similar products to similar customers.  Both segments operate primarily in the U.S. and European markets, but they have distinctly different customers, design and manufacturing processes and marketing strategies.  Each segment has discrete financial information and a separate management structure.

The Company evaluates performance based upon contribution margin of the segments and also upon profit or loss from operations before income taxes exclusive of nonrecurring gains and losses. The Company accounts for intersegment sales at pre-determined prices negotiated between the individual segments.

During the first quarter of 2010, the Company sold its RO Operations and during the third quarter of 2010, the Company sold its ACC Operations (see Note 3), all of which were part of its electronic devices segment.  These transactions resulted in differences in the basis of segmentation from the amounts disclosed in the Company’s unaudited condensed consolidated financial statements included in its quarterly report on Form 10-Q for the quarter ended June 30, 2010.  In this report, the RO Operations and ACC Operations are reported as discontinued operations and are excluded from the electronics devices segment.

Selected financial data for each of the Company’s operating segments reconciled to the consolidated totals is shown below (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net sales
Electronic devices	$	4,705		$	3,958		$	9,327		$	8,396
Communications equipment	2,245			2,516			5,662			5,170
Total net sales	$	6,950		$	6,474		$	14,989		$	13,566
Operating income (loss)
Electronic devices	$	294		$	211		$	486		$	688
Communications equipment	(549		)	(213		)	(570		)	(692		)
Corporate and other	(897		)	(1,025		)	(1,915		)	(2,128		)
Total operating loss	$	(1,152	)	$	(1,027	)	$	(1,999	)	$	(2,132	)

	June 30,		December 31,
	2011		2010
Total assets
Electronic devices	$	15,411	$	13,848
Communications equipment	7,818		8,781
Corporate and other	1,310		2,860
Total assets	$	24,539	$	25,489