Business segments

6 Months Ended

Jun. 30, 2011

Business segments

12.  Business Segments   

The Company operates in two business segments, Advanced Technology Group (ATG) and Consumer Products Group (CPG). The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery and other edged products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use. 

As of June 30, 2011, the Company had identifiable assets of approximately $29,217,000 ($28,506,000 – December 31, 2010) of which approximately $15,284,000 ($15,342,000 – December 31, 2010) was for ATG and approximately $13,933,000 ($13,164,000 – December 31, 2010) was for CPG.

Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): 

	ATG						CPG						Consolidated
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010
Revenues from unaffiliated customers	$	10,409		$	9,077		$	6,279		$	7,010		$	16,688		$	16,087
Cost of sale, exclusive of depreciation
and amortization	(	7,048	)	(	5,971	)	(	5,115	)	(	5,225	)	(	12,163	)	(	11,196	)
Selling, general and administrative	(	1,497	)	(	1,458	)	(	1,056	)	(	999	)	(	2,553	)	(	2,457	)
Depreciation and amortization	(	214	)	(	209	)	(	121	)	(	115	)	(	335	)	(	324	)
Interest expense	(	25	)	(	28	)	(	5	)	(	6	)	(	30	)	(	34	)
Other income, net		8			15			6			8			14			23
Net income (loss) before income
tax provision	$	1,633		$	1,426		$(	12	)	$	673		$	1,621		$	2,099
Capital expenditures	$	81		$	77		$	104		$	29		$	185		$	106

	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010
Revenues from unaffiliated customers	$	5,293		$	4,617		$	3,120		$	3,586		$	8,413		$	8,203
Cost of sale, exclusive of depreciation
and amortization	(	3,577	)	(	2,983	)	(	2,377	)	(	2,724	)	(	5,954	)	(	5,707	)
Selling, general and administrative	(	768	)	(	697	)	(	488	)	(	463	)	(	1,256	)	(	1,160	)
Depreciation and amortization	(	107	)	(	103	)	(	61	)	(	58	)	(	168	)	(	161	)
Interest expense	(	12	)	(	14	)	(	3	)	(	3	)	(	15	)	(	17	)
Other income, net		1			3			3			5			4			8
Net income before income
tax provision	$	830		$	823		$	194		$	343		$	1,024		$	1,166
Capital expenditures	$	53		$	22		$	31		$	7		$	84		$	29