Business Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

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 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 December 31, 2011, the Company had identifiable assets of approximately $30,423,000 ($28,506,000 – December 31, 2010) of which approximately $18,004,000 ($15,342,000 – December 31, 2010) was for ATG and approximately $12,419,000 ($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
	Years ended						Years ended						Years ended
	December 31,						December 31,						December 31,
	2011			2010			2011			2010			2011			2010
Revenues from unaffiliated customers	$	21,816		$	19,301		$	12,365		$	12,358		$	34,181		$	31,659
Cost of goods sold, exclusive of depreciation		(14,710	)		(12,943	)		(10,568	)		(9,957	)		(25,278	)		(22,900	)
Selling, general and administrative		(3,034	)		(3,023	)		(1,985	)		(1,978	)		(5,019	)		(5,001	)
Interest expense		(56	)		(63	)		(9	)		(11	)		(65	)		(74	)
Depreciation and amortization		(431	)		(417	)		(255	)		(247	)		(686	)		(664	)
Other income, net		150			14			12			14			162			28
Net income (loss) before income tax provision	$	3,735		$	2,869		$	(440	)	$	179		$	3,295		$	3,048
Capital expenditures	$	271		$	276		$	337		$	216		$	608		$	492

The Company engages in a significant amount of business with the United States Government through sales to its prime contractors and otherwise. Such contracts by the Advanced Technology Group accounted for revenues of approximately $6,300,000 in 2011 and $6,700,000 in 2010. Similar contracts by the Consumer Products Group accounted for revenues of approximately $6,900,000 in 2011 and $6,800,000 in 2010. Sales of advanced technology products to one customer, including various divisions and subsidiaries of a common parent company, amounted to approximately 25% of total revenues in 2011 and 22% in 2010. The Company also had sales to another ATG customer that amounted to approximately 10% of total revenues in 2011 and 9% in 2010. No other single customer represented more than 10% of the Company’s revenues in any of these years.