Note 9 - Segments and Geographic Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 9. 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						Six months ended
	June 30,						June 30,
	2013			2012			2013			2012
Solutions:
Net sales	$	1,983		$	2,105		$	3,790		$	3,745
Cost of sales		1,775			1,678			3,298			3,240
Gross profit		208			427			492			505
Operating expenses:
Sales and marketing		267			370			537			684
General and administrative		209			164			411			314
Loss on impairment		325			-			325			-
Total operating expenses		801			534			1,273			998
Segment loss	$	(593	)	$	(107	)	$	(781	)	$	(493	)
Products:
Net sales	$	5,398		$	5,567		$	8,924		$	9,229
Cost of sales		3,584			4,290			6,193			7,245
Gross profit		1,814			1,277			2,731			1,984
Operating expenses (income):
Research and development		172			(61	)		209			(15	)
Sales and marketing		998			890			1,795			1,751
General and administrative		327			61			401			142
Total operating expenses		1,497			890			2,405			1,878
Segment income	$	317		$	387		$	326		$	106
Reconciliation of segment income (loss) to net loss:
Segment income (loss):
Solutions	$	(593	)	$	(107	)	$	(781	)	$	(493	)
Products		317			387			326			106
Total segment (loss) income		(276	)		280			(455	)		(387	)
Operating expenses:
Sales and marketing		233			130			469			226
General and administrative		737			889			1,527			1,812
Change in estimate of contingent liabilities		12			-			12			-
Total operating expenses		982			1,019			2,008			2,038
Other income (expense)		580			(158	)		360			(336	)
Loss before income taxes		(678	)		(897	)		(2,103	)		(2,761	)
Provision for income taxes		(1	)		(3	)		(4	)		(6	)
Net loss	$	(679	)	$	(900	)	$	(2,107	)	$	(2,767	)

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					Six months ended
	June 30,					June 30,
	2013		2012			2013		2012
Products segment net sales:
Pool and commercial products	$	3,375	$	4,905		$	5,891	$	7,195
Government products/R&D services		2,023		662			3,033		2,034
Total products segment net sales		5,398		5,567			8,924		9,229
Products segment cost of sales:
Pool and commercial products		2,112		3,554			3,822		5,185
Government products/R&D services		1,472		736			2,371		2,060
Total products segment cost of sales		3,584		4,290			6,193		7,245
Products segment gross profit (loss):
Pool and commercial products		1,263		1,351			2,069		2,010
Government products/R&D services		551		(74	)		662		(26	)
Total products segment gross profit	$	1,814	$	1,277		$	2,731	$	1,984

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

	Three months ended				Six months ended
	June 30,				June 30,
	2013		2012		2013		2012
United States	$	6,603	$	6,937	$	11,335	$	11,724
International		778		735		1,379		1,250
Net sales	$	7,381	$	7,672	$	12,714	$	12,974

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

	June 30,		December 31,
	2013		2012
United States	$	1,730	$	2,350
International		50		58
Long-lived assets, net	$	1,780	$	2,408