Discontinued operations

6 Months Ended

Jun. 30, 2012

3.	Discontinued operations

The Company is in the process of further evaluating existing product lines and the consolidation of facilities. During the second quarter of 2012, the Company committed to a plan to enhance profit margins through the expected sale of a component in the next twelve months. As such, in the second quarter of 2012, the Company recorded a write down of certain assets to lower of cost or market resulting in an after tax loss of approximately $268,000 and has reclassified related inventory and property, plant and equipment in the amount of $650,000 to assets held for sale as of June 30, 2012 in the accompanying consolidated balance sheet. Revenues and losses from operations before income tax benefit related to this component amounted to approximately $465,000 and $241,000, respectively, for the six months ended June 30, 2012 and $497,000 and $110,000, respectively, for the same period in 2011. Revenues and losses from operations before income tax benefit related to this component amounted to approximately $247,000 and $112,000, respectively, for the three months ended June 30, 2012 and $266,000 and $18,000, respectively, for the same period in 2011.

On the accompanying consolidated statements of income, loss from operations of a discontinued component is presented net of an income tax benefit of approximately $45,000 and $82,000 for the three and six months ended June 30, 2012. Loss from operations of a discontinued component is presented net of an income tax benefit of approximately $5,000 and $33,000 for the three and six months ended June 30, 2011. For the three and six months ended June 30, 2012, write down on assets associated with a discontinued component is presented net of an income tax benefit of approximately $138,000.