Business Segments

6 Months Ended

Jun. 30, 2012

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 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, 2012, the Company had identifiable assets of approximately $31,005,000 ($30,423,000 – December 31, 2011) of which approximately $18,990,000 ($18,004,000 – December 31, 2011) was for ATG and approximately $12,015,000 ($12,419,000 – December 31, 2011) 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,
	2012			2011			2012			2011			2012			2011
Revenues from unaffiliated customers	$	10,889		$	10,409		$	5,118		$	5,782		$	16,007		$	16,191
Cost of goods sold, exclusive of depreciation and amortization		(7,364	)		(7,048	)		(4,627	)		(4,571	)		(11,991	)		(11,619	)
Selling, general and administrative		(1,569	)		(1,497	)		(1,004	)		(997	)		(2,573	)		(2,494	)
Interest expense		(23	)		(25	)		(4	)		(5	)		(27	)		(30	)
Depreciation and amortization		(219	)		(214	)		(121	)		(117	)		(340	)		(331	)
Other income, net		4			8			6			6			10			14
Income (loss) from continuing operations before income tax provision		1,718			1,633			(632	)		98			1,086			1,731
Income tax provision (benefit)		489			491			(180	)		29			309			520
Income (loss) from continuing operations		1,229			1,142			(452	)		69			777			1,211
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			(160	)		(77	)		(160	)		(77	)
Write-down of assets associated with a discontinued component, net of income tax benefit		-			-			(268	)		-			(268	)		-
Loss from discontinued operations		-			-			(428	)		(77	)		(428	)		(77	)
Net income (loss)	$	1,229		$	1,142		$	(880	)	$	(8	)	$	349		$	1,134
Capital expenditures	$	93		$	81		$	43		$	104		$	136		$	185

	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30,						June 30,						June 30,
	2012			2011			2012			2011			2012			2011
Revenues from unaffiliated customers	$	5,587		$	5,293		$	2,269		$	2,854		$	7,856		$	8,147
Cost of goods sold, exclusive of depreciation and amortization		(3,584	)		(3,577	)		(1,950	)		(2,121	)		(5,534	)		(5,698	)
Selling, general and administrative		(838	)		(768	)		(434	)		(462	)		(1,272	)		(1,230	)
Interest expense		(12	)		(12	)		(2	)		(3	)		(14	)		(15	)
Depreciation and amortization		(110	)		(107	)		(59	)		(59	)		(169	)		(166	)
Other income, net		-			1			2			3			2			4
Income (loss) from continuing operations before income tax provision		1,043			830			(174	)		212			869			1,042
Income tax provision (benefit)		297			250			(50	)		63			247			313
Income (loss) from continuing operations		746			580			(124	)		149			622			729
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			(74	)		(13	)		(74	)		(13	)
Write-down of assets associated with a discontinued component, net of income tax benefit		-			-			(268	)		-			(268	)		-
Loss from discontinued operations		-			-			(342	)		(13	)		(342	)		(13	)
Net income (loss)	$	746		$	580		$	(466	)	$	136		$	280		$	716
Capital expenditures	$	43		$	53		$	6		$	31		$	49		$	84