Segments and Geographic Information

3 Months Ended

Mar. 31, 2012

Segments and Geographic Information [Abstract]

SEGMENTS AND GEOGRAPHIC INFORMATION

NOTE 8. SEGMENTS AND GEOGRAPHIC INFORMATION

The Company has two reportable segments: product-based sales, featuring military, general commercial and industrial lighting, and pool lighting, each of which markets and sells lighting systems, and solutions-based sales providing turnkey, high-quality, energy-efficient lighting application alternatives. The Company’s products are sold through a combination of direct sales employees, independent sales representatives, and various distributors in different geographic markets throughout the world. The Company’s solutions-based sales are designed to enhance total value by positively impacting customers’ profitability, the environment, and the communities it serves. These solutions are sold through the Company’s direct sales employees as well as our SRC subsidiary, and include not only its proprietary energy-efficient lighting solutions, but also sourced lighting systems, energy audits, and service agreements.

The following summarizes the Company’s reportable segment data for periods indicated (in thousands):

	Three months ended March 31,
	2012			2011
Solutions:
Net sales	$	1,640		$	2,602
Cost of sales		1,562			2,053
Gross profit		78			549
Operating expenses (income):
Sales and marketing		314			349
General and administrative		150			237
Total operating expenses		464			586
Segment loss	$	(386	)	$	(37	)
Products:
Net sales	$	3,662		$	2,858
Cost of sales		2,955			2,248
Gross profit		707			610
Operating expenses (income):
Research and development		46			265
Sales and marketing		861			1,519
General and administrative		81			106
Total operating expenses		988			1,890
Segment loss	$	(281	)	$	(1,280	)
Reconciliation of segment income (loss) to net loss:
Segment income (loss):
Solutions	$	(386	)	$	(37	)
Products		(281	)		(1,280	)
Total segment loss		(667	)		(1,317	)
Operating expenses (income):
Sales and marketing		96			67
General and administrative		923			1,235
Valuation of equity instruments		—			56
Total operating expenses		1,019			1,358
Other expense		(178	)		(133	)
Loss before income taxes		(1,864	)		(2,808	)
Provision for income taxes		(3	)		(5	)
Net loss	$	(1,867	)	$	(2,813	)

The following table provides additional business unit gross profitability detail for the Company’s product-based business segment for the periods indicated (in thousands):

	Three months ended March 31,
	2012		2011
Products segment net sales:
Pool and commercial products	$	2,290	$	2,348
Government products/R&D services		1,372		510
Total products segment net sales		3,662		2,858
Products segment cost of sales:
Pool and commercial products		1,631		1,800
Government products/R&D services		1,324		448
Total products segment cost of sales		2,955		2,248
Products segment gross profit:
Pool and commercial products		659		548
Government products/R&D services		48		62
Total products segment gross profit	$	707	$	610

A geographic summary of net sales is as follows (in thousands):

	Three months ended March 31,
	2012		2011
United States	$	4,787	$	4,553
International		515		907
Net sales	$	5,302	$	5,460

A geographic summary of long-lived assets, which consists of fixed assets, goodwill, and intangible assets, is as follows (in thousands):

	March 31, 2012		December 31, 2011
United States	$	3,514	$	3,747
International		49		57
Long-lived assets, net	$	3,563	$	3,804