Operating Segments

12 Months Ended

Dec. 31, 2013

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.

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,
	2013			2012
Net sales
Electronic devices	$	21,717		$	24,036
Communications equipment		10,181			10,011
Total	$	31,898		$	34,047
Gross profit
Electronic devices	$	6,280		$	7,085
Communications equipment		3,435			2,921
Total	$	9,715		$	10,006
Depreciation and amortization
Electronic devices	$	288		$	237
Communications equipment		176			172
All other		10			4
Total	$	474		$	413
Operating income (loss)
Electronic devices	$	2,681		$	3,355
Communications equipment		46			(703	)
Corporate and other		(2,478	)		(2,707	)
Total	$	249		$	(55	)

	December 31, 2013		December 31, 2012
Total assets
Electronic devices	$	20,134	$	17,222
Communications equipment		6,266		7,018
Corporate and other		59		158
Total	$	26,459	$	24,398

One customer of the electronic devices segment accounted for 11.6% of total sales in 2013. This customer accounted for 10.8% of sales in 2012. No other customer in either segment accounted for 10% or more of net sales during 2013 or 2012.

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):

	2013				2012
	Electronic Devices		Communications Equipment		Electronic Devices		Communications Equipment
United States	$	-	$	1,465	$	-	$	1,712
United Kingdom		21,717		-		24,036		-
France		-		8,716		-		8,299
Total net sales	$	21,717	$	10,181	$	24,036	$	10,011

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):

	2013		2012
United States	$	1,022	$	1,426
United Kingdom		20,134		17,222
France		5,303		5,750
Total assets	$	26,459	$	24,398