Business Segments

12 Months Ended

Dec. 31, 2013

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, 2013, the Company had assets of approximately $30,003,000 ($29,303,000 – December 31, 2012) of which approximately $19,816,000 ($19,211,000 – December 31, 2012) was for ATG and approximately $10,187,000 ($10,092,000 – December 31, 2012) 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,
	2013			2012			2013			2012			2013			2012
Revenues from unaffiliated customers	$	22,204		$	22,000		$	8,106		$	8,510		$	30,310		$	30,510
Cost of goods sold, exclusive of depreciation and amortization		(16,155	)		(15,275	)		(6,644	)		(7,141	)		(22,799	)		(22,416	)
Selling, general and administrative		(3,985	)		(3,319	)		(1,653	)		(1,728	)		(5,638	)		(5,047	)
Interest expense		(41	)		(52	)		-			-			(41	)		(52	)
Depreciation and amortization		(452	)		(432	)		(188	)		(182	)		(640	)		(614	)
Other income, net		(2	)		4			44			10			42			14
Income (loss) from continuing operations before income tax provision (benefit)		1,569			2,926			(335	)		(531	)		1,234			2,395
Income tax provision (benefit)		329			915			(70	)		(167	)		259			748
Income (loss) from continuing operations		1,240			2,011			(265	)		(364	)		975			1,647
Discontinued operations:
Loss from operations of a discontinued component, net of income tax benefit		-			-			-			(647	)		-			(647	)
Loss on disposal of QCC and AMP, net of income tax benefit		-			-			-			(680	)		-			(680	)
Loss from discontinued operations		-			-			-			(1,327	)		-			(1,327	)
Net income (loss)	$	1,240		$	2,011		$	(265	)	$	(1,691	)	$	975		$	320
Capital expenditures	$	1,191		$	574		$	372		$	311		$	1,563		$	885

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 $5,300,000 in 2013 and $6,000,000 in 2012. Similar contracts by the Consumer Products Group accounted for consolidated revenues from continuing operations of approximately $1,100,000 in 2013 and $2,750,000 in 2012. Sales of advanced technology products to one customer, including various divisions and subsidiaries of a common parent company, amounted to approximately 29% of total consolidated revenues from continuing operations in 2013 and 27% in 2012. The Company also had sales to another ATG customer that amounted to approximately 11% and 10% of total consolidated revenues from continuing operations in 2013 and 2012. No other single customer represented more than 10% of the Company’s consolidated revenues from continuing operations in any of these years.