Business Segments

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Business Segments

13.          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, 2012, the Company had identifiable assets of approximately $29,303,000 ($30,423,000 – December 31, 2011) of which approximately $19,211,000 ($18,004,000 – December 31, 2011) was for ATG and approximately $10,092,000 ($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
	Years ended						Years ended						Years ended
	December 31,						December 31,						December 31,
	2012			2011			2012			2011			2012			2011
Revenues from unaffiliated customers	$	22,000		$	21,816		$	8,510		$	11,083		$	30,510		$	32,899
Cost of goods sold, exclusive of depreciation and amortization		(15,275	)		(14,710	)		(7,141	)		(8,164	)		(22,416	)		(22,874	)
Selling, general and administrative		(3,319	)		(3,034	)		(1,728	)		(1,705	)		(5,047	)		(4,739	)
Interest expense		(52	)		(56	)		-			-			(52	)		(56	)
Depreciation and amortization		(432	)		(431	)		(182	)		(161	)		(614	)		(592	)
Other income, net		4			150			10			10			14			160
Income (loss) from continuing operations before income tax provision (benefit)		2,926			3,735			(531	)		1,063			2,395			4,798
Income tax provision (benefit)		915			885			(167	)		254			748			1,139
Income (loss) from continuing operations		2,011			2,850			(364	)		809			1,647			3,659
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			(647	)		(1,033	)		(647	)		(1,033	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			(680	)		-			(680	)		-
Loss from discontinued operations		-			-			(1,327	)		(1,033	)		(1,327	)		(1,033	)
Net income (loss)	$	2,011		$	2,850		$	(1,691	)	$	(224	)	$	320		$	2,626
Capital expenditures	$	574		$	271		$	311		$	337		$	885		$	608

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 consolidated revenues from continuing operations of approximately $6,000,000 in 2012 and $6,300,000 in 2011. Similar contracts by the Consumer Products Group accounted for consolidated revenues from continuing operations of approximately $2,750,000 in 2012 and $6,900,000 in 2011. Sales of advanced technology products to one customer, including various divisions and subsidiaries of a common parent company, amounted to approximately 27% of total consolidated revenues from continuing operations in 2012 and 26% in 2011. The Company also had sales to another ATG customer that amounted to approximately 10% of total consolidated revenues from continuing operations in 2012 and 2011. No other single customer represented more than 10% of the Company’s consolidated revenues from continuing operations in any of these years.