Note 10 - Segments and Geographic Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 10. SEGMENTS AND GEOGRAPHIC INFORMATION

The Company has two reportable segments: products segment featuring pool lighting, general commercial and industrial lighting, government products, and research and development services, each of which markets and sells energy-efficient 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 September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Solutions:
Net sales	$	2,104		$	2,066		$	5,894		$	5,811
Cost of sales		1,888			1,672			5,186			4,912
Gross profit		216			394			708			899
Operating expenses:
Sales and marketing		397			320			934			1,004
General and administrative		115			244			526			558
Loss on impairment		-			-			325			-
Total operating expenses		512			564			1,785			1,562
Segment loss	$	(296	)	$	(170	)	$	(1,077	)	$	(663	)
Products:
Net sales	$	3,884		$	5,838		$	12,808		$	15,067
Cost of sales		2,686			4,273			8,879			11,518
Gross profit		1,198			1,565			3,929			3,549
Operating expenses:
Research and development		57			102			266			87
Sales and marketing		821			957			2,616			2,708
General and administrative		106			119			307			261
Restructuring expense		79			-			79			-
Total operating expenses		1,063			1,178			3,268			3,056
Segment income	$	135		$	387		$	661		$	493
Reconciliation of segment income (loss) to net loss:
Segment (loss) income:
Solutions	$	(296	)	$	(170	)	$	(1,077	)	$	(663	)
Products		135			387			661			493
Total segment (loss) income		(161	)		217			(416	)		(170	)
Operating expenses:
Sales and marketing		332			146			801			372
General and administrative		964			848			2,691			2,660
Change in estimate of contingent liabilities		-			-			12			-
Total operating expenses		1,296			994			3,504			3,032
Other (expense) income		(192	)		(149	)		168			(485	)
Loss before income taxes		(1,649	)		(926	)		(3,752	)		(3,687	)
Provision for income taxes		(2	)		(2	)		(6	)		(8	)
Net loss	$	(1,651	)	$	(928	)	$	(3,758	)	$	(3,695	)

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 September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Products segment net sales:
Pool and commercial products	$	2,612	$	4,159	$	8,503	$	11,354
Government products/R&D services		1,272		1,679		4,305		3,713
Total products segment net sales		3,884		5,838		12,808		15,067
Products segment cost of sales:
Pool and commercial products		1,668		2,892		5,490		8,077
Government products/R&D services		1,018		1,381		3,389		3,441
Total products segment cost of sales		2,686		4,273		8,879		11,518
Products segment gross profit:
Pool and commercial products		944		1,267		3,013		3,277
Government products/R&D services		254		298		916		272
Total products segment gross profit	$	1,198	$	1,565	$	3,929	$	3,549

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

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
United States	$	5,348	$	6,976	$	16,683	$	18,700
International		640		928		2,019		2,178
Net sales	$	5,988	$	7,904	$	18,702	$	20,878

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

	September 30, 2013		December 31, 2012
United States	$	1,533	$	2,350
International		39		58
Long-lived assets, net	$	1,572	$	2,408