Business Segments

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

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 September 30, 2011, the Company had identifiable assets of approximately $30,010,000 ($28,506,000 – December 31, 2010) of which approximately $15,520,000 ($15,342,000 – December 31, 2010) was for ATG and approximately $14,490,000 ($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
	Nine Months Ended		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,
	2011	2010	2011	2010	2011	2010
Revenues from unaffiliated customers	$15,817	$13,713	$9,679	$9,720	$25,496	$23,433
Cost of good sold, exclusive of depreciation
and amortization	(10,571)	(9,135)	(7,876)	(7,704)	(18,447)	(16,839)
Selling, general and administrative	(2,201)	(2,189)	(1,556)	(1,493)	(3,757)	(3,682)
Interest expense	(37)	(42)	(7)	(8)	(44)	(50)
Depreciation and amortization	(319)	(311)	(179)	(172)	(498)	(483)
Other income, net	153	16	11	13	164	29
Income before income
tax provision	$2,842	$2,052	$72	$356	$2,914	$2,408
Capital expenditures	$151	$203	$284	$109	$435	$312

	ATG		CPG		Consolidated
	Three Months Ended		Three Months Ended		Three Months Ended
	September 30,		September 30,		September 30,
	2011	2010	2011	2010	2011	2010
Revenues from unaffiliated customers	$5,409	$4,636	$3,399	$2,710	$8,808	$7,346
Cost good sold, exclusive of depreciation
and amortization	(3,522)	(3,164)	(2,762)	(2,479)	(6,284)	(5,643)
Selling, general and administrative	(704)	(731)	(500)	(494)	(1,204)	(1,225)
Interest expense	(12)	(14)	(2)	(2)	(14)	(16)
Depreciation and amortization	(105)	(102)	(58)	(57)	(163)	(159)
Other income, net	145	1	5	5	150	6
Income (loss) before income
tax provision (benefit)	$1,211	$626	$82	($317)	$1,293	$309
Capital expenditures	$70	$126	$180	$80	$250	$206