Note 10 - Segments and Geographic Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 10. SEGMENTS AND GEOGRAPHIC INFORMATION

We have two reportable segments: products and solutions. The products segment includes the marketing and sale of commercial, industrial, government, military and maritime lighting products, and research and development services. Our products are sold primarily in North America, Europe, and the Far East through a combination of direct sales employees, independent sales representatives and distributors. Our solutions segment provides turnkey, high-quality, energy-efficient lighting application alternatives, which are designed to enhance total value by positively impacting customers’ profitability, the environment, and the communities served. These solutions are sold through our EFLS subsidiary, and include not only our proprietary energy-efficient lighting solutions, but also sourced lighting systems, energy audits and service agreements.

The following summarizes our reportable segment data for periods indicated (in thousands):

	Three months ended						Six months ended
	June 30,						June 30,
	2014			2013			2014			2013
Solutions:
Net sales	$	1,133		$	1,983		$	3,321		$	3,790
Cost of sales		948			1,775			2,513			3,298
Gross profit		185			208			808			492
Operating expenses:
Selling, general, and administrative		352			476			783			948
Loss on impairment		-			325			-			325
Total operating expenses		352			801			783			1,273
Segment (loss) income	$	(167	)	$	(593	)	$	25		$	(781	)
Products:
Net sales	$	5,566		$	3,670		$	8,297		$	6,321
Cost of sales		3,577			2,640			5,509			4,692
Gross profit		1,989			1,030			2,788			1,629
Operating expenses:
Research and development		55			172			118			209
Selling, general, and administrative		1,223			1,025			2,018			1,609
Total operating expenses		1,278			1,197			2,136			1,818
Segment income (loss)	$	711		$	(167	)	$	652		$	(189	)
Reconciliation of segment income (loss) to net loss:
Segment income (loss):
Solutions	$	(167	)	$	(593	)	$	25		$	(781	)
Products		711			(167	)		652			(189	)
Total segment income (loss)		544			(760	)		677			(970	)
Operating expenses:
Research and development		148			-			276			-
Selling, general, and administrative		958			970			2,036			1,996
Change in estimate of contingent liabilities		-			12			-			12
Total operating expenses		1,106			982			2,312			2,008
Other (expense) income		(61	)		580			(3,039	)		360
Loss from continuing operations before income taxes		(623	)		(1,162	)		(4,674	)		(2,618	)
Benefit (provision) for income taxes		1			-			2			-
Net loss from continuing operations	$	(622	)	$	(1,162	)	$	(4,672	)	$	(2,618	)

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

	Three months ended					Six months ended
	June 30,					June 30,
	2014			2013		2014		2013
Products segment net sales:
Commercial	$	1,929		$	1,647	$	3,095	$	3,288
Government		3,620			1,603		5,162		1,856
R&D services		17			420		40		1,177
Total products segment net sales		5,566			3,670		8,297		6,321
Products segment cost of sales:
Commercial		1,194			1,168		1,965		2,321
Government		2,387			1,060		3,525		1,301
R&D services		(4	)		412		19		1,070
Total products segment cost of sales		3,577			2,640		5,509		4,692
Products segment gross profit:
Commercial		735			479		1,130		967
Government		1,233			543		1,637		555
R&D services		21			8		21		107
Total products segment gross profit	$	1,989		$	1,030	$	2,788	$	1,629

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

	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
United States	$	5,590	$	4,885	$	9,873	$	8,770
International		1,109		768		1,745		1,341
Net sales	$	6,699	$	5,653	$	11,618	$	10,111

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

	June 30,		December 31,
	2014		2013
United States	$	527	$	582
International		31		9
Long-lived assets, net	$	558	$	591