Note 11 - Segments and Geographic Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 11. SEGMENTS AND GEOGRAPHIC INFORMATION

We had two reportable segments for the nine months ended September 30, 2014 and September 30, 2013: 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 the United States and Europe 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 customer profitability, the environment, and the communities served. During the third quarter of 2014, we began shifting our focus away from the turnkey solutions business to align our resources with developing and selling our LED products.

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

	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Solutions:
Net sales	$	224		$	2,104		$	3,545		$	5,894
Cost of sales		309			1,888			2,822			5,186
Gross (loss) profit		(85	)		216			723			708
Operating expenses:
Selling, general, and administrative		295			512			1,078			1,460
Loss on impairment		-			-			-			325
Total operating expenses		295			512			1,078			1,785
Segment loss	$	(380	)	$	(296	)	$	(355	)	$	(1,077	)
Products:
Net sales	$	7,666		$	2,723		$	15,963		$	9,044
Cost of sales		5,023			2,009			10,532			6,701
Gross profit		2,643			714			5,431			2,343
Operating expenses:
Research and development		63			57			181			266
Selling, general, and administrative		1,182			464			3,200			2,073
Restructuring		-			79			-			79
Total operating expenses		1,245			600			3,381			2,418
Segment income (loss)	$	1,398		$	114		$	2,050		$	(75	)

Reconciliation of segment income (loss) to net loss:
Segment income (loss):
Solutions	$	(380	)	$	(296	)	$	(355	)	$	(1,077	)
Products		1,398			114			2,050			(75	)
Total segment income (loss)		1,018			(182	)		1,695			(1,152	)
Operating expenses:
Research and development		169			-			445			-
Selling, general, and administrative		1,171			1,496			3,207			3,492
Change in estimate of contingent liabilities		-			-			-			12
Total operating expenses		1,340			1,496			3,652			3,504
Other (expense) income		(81	)		(192	)		(3,120	)		168
Loss from continuing operations before income taxes		(403	)		(1,870	)		(5,077	)		(4,488	)
Benefit for income taxes		-			-			2			-
Net loss from continuing operations	$	(403	)	$	(1,870	)	$	(5,075	)	$	(4,488	)

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

	Three months ended					Nine months ended
	September 30,					September 30,
	2014		2013			2014		2013
Products segment net sales:
Commercial	$	1,648	$	1,451		$	4,743	$	4,739
Government		6,002		707			11,164		2,563
R&D services		16		565			56		1,742
Total products segment net sales		7,666		2,723			15,963		9,044
Products segment cost of sales:
Commercial		1,062		991			3,027		3,312
Government		3,945		445			7,470		1,746
R&D services		16		573			35		1,643
Total products segment cost of sales		5,023		2,009			10,532		6,701
Products segment gross profit:
Commercial		586		460			1,716		1,427
Government		2,057		262			3,694		817
R&D services		-		(8	)		21		99
Total products segment gross profit	$	2,643	$	714		$	5,431	$	2,343

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

	Three months ended				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
United States	$	7,517	$	4,213	$	17,390	$	12,983
International		373		614		2,118		1,955
Net sales	$	7,890	$	4,827	$	19,508	$	14,938

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

	September 30,		December 31,
	2014		2013
United States	$	529	$	582
International		27		9
Long-lived assets, net	$	556	$	591