Operating Segments

12 Months Ended

Dec. 31, 2014

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 (which closed in October 2014) and CXR AJ located in France, both of which offered 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,
	2014			2013
Net sales
Electronic devices	$	24,227		$	21,717
Communications equipment		11,438			10,181
Total	$	35,665		$	31,898
Gross profit
Electronic devices	$	7,489		$	6,280
Communications equipment		3,692			3,435
Total	$	11,181		$	9,715
Depreciation and amortization
Electronic devices	$	380		$	288
Communications equipment		132			176
All other		-			10
Total	$	512		$	474
Operating income (loss)
Electronic devices	$	3,856		$	2,681
Communications equipment		25			46
Corporate and other		(2,229	)		(2,478	)
Total	$	1,652		$	249

	December 31, 2014		December 31, 2013
Total assets
Electronic devices	$	18,817	$	20,134
Communications equipment		5,763		6,266
Corporate and other		275		59
Total	$	24,855	$	26,459

One customer of the electronic devices segment accounted for 10.7% of total sales in 2014. The largest customer in 2013 accounted for 11.6% of sales. No other customer in either segment accounted for 10% or more of net sales during 2014 or 2013.

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):

	2014				2013
	Electronic Devices		Communications Equipment		Electronic Devices		Communications Equipment
United States	$	-	$	1,218	$	-	$	1,465
United Kingdom		24,227		-		21,717		-
France		-		10,220		-		8,716
Total net sales	$	24,227	$	11,438	$	21,717	$	10,181

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):

	2014		2013
United States	$	375	$	1,022
United Kingdom		18,817		20,134
France		5,663		5,303
Total assets	$	24,855	$	26,459