Business Segments

9 Months Ended

Sep. 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 sale of QCC and the closure of AMP are not expected to have a material impact on either government or commercial sales. The result of these discontinued operations eliminates primarily gentlemen folding blades and various shears to the CPG product lines. 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, 2012, the Company had identifiable assets of approximately $30,226,000 ($30,423,000 – December 31, 2011) of which approximately $19,919,000 ($18,004,000 – December 31, 2011) was for ATG and approximately $10,307,000 ($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
	Nine Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011
Revenues from unaffiliated customers	$	16,671		$	15,817		$	6,631		$	8,775		$	23,302		$	24,592
Cost of goods sold, exclusive of depreciation and amortization		(11,445	)		(10,571	)		(5,636	)		(6,475	)		(17,081	)		(17,046	)
Selling, general and administrative		(2,411	)		(2,201	)		(1,342	)		(1,342	)		(3,753	)		(3,543	)
Interest expense		(34	)		(37	)		-			-			(34	)		(37	)
Depreciation and amortization		(323	)		(319	)		(114	)		(108	)		(437	)		(427	)
Other income, net		5			153			7			11			12			164
Income (loss) from continuing operations before income tax provision		2,463			2,842			(454	)		861			2,009			3,703
Income tax provision (benefit)		812			855			(149	)		260			663			1,115
Income (loss) from continuing operations		1,651			1,987			(305	)		601			1,346			2,588
Discontinued Operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			(591	)		(550	)		(591	)		(550	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			(530	)		-			(530	)		-
Loss from discontinued operations		-			-			(1,121	)		(550	)		(1,121	)		(550	)
Net income (loss)	$	1,651		$	1,987		($	1,426	)	$	51		$	225		$	2,038
Capital expenditures	$	327		$	151		$	67		$	284		$	394		$	435

	ATG						CPG						Consolidated
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011
Revenues from unaffiliated customers	$	5,783		$	5,409		$	1,733		$	3,141		$	7,516		$	8,550
Cost of goods sold, exclusive of depreciation and amortization		(4,080	)		(3,522	)		(1,456	)		(2,299	)		(5,536	)		(5,821	)
Selling, general and administrative		(842	)		(704	)		(433	)		(441	)		(1,275	)		(1,145	)
Interest expense		(11	)		(12	)		-			-			(11	)		(12	)
Depreciation and amortization		(104	)		(105	)		(37	)		(34	)		(141	)		(139	)
Other income, net		-			145			2			5			2			150
Income (loss) from continuing operations before income tax provision		746			1,211			(191	)		372			555			1,583
Income tax provision (benefit)		335			365			(86	)		111			249			476
Income (loss) from continuing operations		411			846			(105	)		261			306			1,107
Discontinued Operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			(188	)		(203	)		(188	)		(203	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			(262	)		-			(262	)		-
Loss from discontinued operations		-			-			(450	)		(203	)		(450	)		(203	)
Net income (loss)	$	411		$	846		$	(555	)	$	58		$	(144	)	$	904
Capital expenditures	$	234		$	70		$	24		$	180		$	258		$	250