Operating Segments

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Operating Segments

NOTE 15 — 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 including timing and synchronization products.  The communications equipment segment consists of operating entities CXR Larus located in the United States and CXR AJ located in France, both of which offer the same or similar products to similar customers.  Both segments operate primarily in the U.S., European and North African 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.

In the fourth quarter of 2011, the Company made the determination to sell its Test Product Line (see Note 3), which was part of the communications equipment segmentin the US and the Test Product Line was classified as an asset held for sale in the 2011 figures. The results from the discontinued operations and assets held for sale are excluded from their respective segments and the prior period amounts have been adjusted to conform to this presentation.

Included in the Company’s reconciliation of segment financial data to the consolidated amounts is unallocated corporate expenses.  Selected financial data for each of the Company’s operating segments reconciled to the consolidated totals is shown below (in thousands):

	Year ended December 31,
	2012			2011
Net sales
Electronic devices	$	24,036		$	22,022
Communications equipment		10,011			11,509
Total	$	34,047		$	33,531
Gross profit
Electronic devices	$	7,085		$	5,859
Communications equipment		2,921			3,665
Total	$	10,006		$	9,524
Depreciation and amortization
Electronic devices	$	237		$	223
Communications equipment		172			163
All other		4			4
Total	$	413		$	390
Operating income (loss)
Electronic devices	$	3,355		$	2,624
Communications equipment		(703	)		(1,023	)
Corporate and other		(2,707	)		(3,244	)
Total	$	(55	)	$	(1,643	)

	December 31, 2012		December 31, 2011
Total assets
Electronic devices	$	17,222	$	16,188
Communications equipment		7,018		7,262
Discontinued and held for sale assets		-		345
Corporate and other		158		873
Total	$	24,398	$	24,668

One customer of the electronic devices segment accounted for 10.8% of total sales in 2012. No other customer in either segment accounted for 10% or more of net sales during 2012 or 2011.

The Company’s segments operate in different geographic areas.  The following table is a summary of the Company’s net sales by geographic area of origination for the year ended December 31 (in thousands):

	2012				2011
	Electronic Devices		Communications Equipment		Electronic Devices		Communications Equipment
United States	$	-	$	1,712	$	-	$	3,077
England		24,036		-		22,022		-
France		-		8,299		-		8,432
Total net sales	$	24,036	$	10,011	$	22,022	$	11,509

Sales and purchases between geographic areas have been accounted for on the basis of prices set between the geographic areas, generally at cost plus 40%.  Net sales by geographic area have been determined based upon the country from which the product was shipped.

The following table is a summary of the Company’s total assets by geographic area at December 31 (in thousands):

	2012		2011
United States	$	1,426	$	3,813
United Kingdom		17,222		15,543
France		5,750		4,967
Discontinued Operations		-		345
Total assets	$	24,398	$	24,668