Note 8 - Segments and Geographic Information

3 Months Ended

Mar. 31, 2013

Segment Reporting Disclosure [Text Block]

NOTE 8.  SEGMENTS AND GEOGRAPHIC INFORMATION

The Company has two reportable segments: products segment featuring pool lighting, general commercial lighting alternatives, government products, and research and development services, each of which markets and sells lighting systems; and solutions segment 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 distributors in different geographic markets throughout the world.  The Company’s solutions 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,
	2013			2012
Solutions:
Net sales	$	1,807		$	1,640
Cost of sales		1,523			1,562
Gross profit		284			78
Operating expenses:
Sales and marketing		270			314
General and administrative		202			150
Total operating expenses		472			464
Segment loss	$	(188	)	$	(386	)
Products:
Net sales	$	3,526		$	3,662
Cost of sales		2,609			2,955
Gross profit		917			707
Operating expenses (income):
Research and development		37			46
Sales and marketing		797			861
General and administrative		74			81
Total operating expenses		908			988
Segment income (loss)	$	9		$	(281	)
Reconciliation of segment income (loss) to net loss:
Segment income (loss):
Solutions	$	(188	)	$	(386	)
Products		9			(281	)
Total segment loss		(179	)		(667	)
Operating expenses:
Sales and marketing		236			96
General and administrative		790			923
Total operating expenses		1,026			1,019
Other expense		(220	)		(178	)
Loss before income taxes		(1,425	)		(1,864	)
Provision for income  taxes		(3	)		(3	)
Net loss	$	(1,428	)	$	(1,867	)

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

	Three months ended March 31,
	2013		2012
Products segment net sales:
Pool and commercial products	$	2,516	$	2,290
Government products/R&D services		1,010		1,372
Total products segment net sales		3,526		3,662
Products segment cost of sales:
Pool and commercial products		1,710		1,631
Government products/R&D services		899		1,324
Total products segment cost of sales		2,609		2,955
Products segment gross profit (loss):
Pool and commercial products		806		659
Government products/R&D services		111		48
Total products segment gross profit	$	917	$	707

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

	Three months ended March 31,
	2013		2012
United States	$	4,732	$	4,787
International		601		515
Net sales	$	5,333	$	5,302

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

	March 31, 2013		December 31, 2012
United States	$	2,254	$	2,350
International		54		58
Long-lived assets, net	$	2,308	$	2,408