| Segment Information |
NOTE 10 – SEGMENT INFORMATION
The Company classifies its businesses into the following four segments:
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·
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Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications;
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·
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Transition Networks manufactures media converters, NIDs, NICs, Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network;
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·
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JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment; and
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·
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Net2Edge develops, manufactures and sells products that enable telecommunications carriers to connect legacy networks to high-speed services.
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Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation.
Information concerning the Company’s continuing operations in the various segments for the three and nine month periods ended September 30, 2017 and 2016 is as follows:
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended September 30, 2017
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Sales
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$
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7,536,000
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$
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9,327,000
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$
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3,613,000
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$
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182,000
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$
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-
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$
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(245,000)
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$
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20,413,000
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Cost of sales
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8,967,000
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5,342,000
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2,730,000
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|
122,000
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-
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(52,000)
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17,109,000
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Gross profit
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(1,431,000)
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3,985,000
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|
883,000
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60,000
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-
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(193,000)
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3,304,000
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Selling, general and
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administrative expenses
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2,239,000
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3,809,000
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471,000
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836,000
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-
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(193,000)
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7,162,000
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Impairment loss
|
|
-
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-
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|
-
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|
-
|
|
-
|
|
-
|
|
-
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Restructuring expense
|
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796,000
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|
-
|
|
-
|
|
-
|
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-
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-
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|
796,000
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Operating (loss) income
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$
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(4,466,000)
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$
|
176,000
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$
|
412,000
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$
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(776,000)
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$
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-
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$
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-
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$
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(4,654,000)
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Depreciation and amortization
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$
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525,000
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$
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158,000
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$
|
76,000
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$
|
9,000
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$
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-
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$
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-
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$
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768,000
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Capital expenditures
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$
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52,000
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$
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174,000
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$
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-
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$
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3,000
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$
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23,000
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$
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-
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$
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252,000
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Assets
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$
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21,389,000
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$
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12,593,000
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$
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4,809,000
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$
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1,258,000
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$
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21,239,000
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$
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(27,000)
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$
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61,261,000
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Net2Edge
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Other
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Eliminations
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Total
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Three Months Ended September 30, 2016
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Sales
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$
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10,420,000
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$
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11,789,000
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$
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3,397,000
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$
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275,000
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$
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-
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$
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(264,000)
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$
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25,617,000
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Cost of sales
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10,080,000
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6,350,000
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2,384,000
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128,000
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-
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(16,000)
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18,926,000
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Gross profit
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340,000
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|
5,439,000
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|
1,013,000
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|
147,000
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-
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(248,000)
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|
6,691,000
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Selling, general and
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administrative expenses
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2,891,000
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3,824,000
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|
563,000
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836,000
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-
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(248,000)
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7,866,000
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Operating (loss) income
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$
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(2,551,000)
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$
|
1,615,000
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$
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450,000
|
$
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(689,000)
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$
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-
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$
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-
|
$
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(1,175,000)
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|
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|
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Depreciation and amortization
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$
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627,000
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$
|
205,000
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$
|
65,000
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$
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23,000
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$
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-
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$
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-
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$
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920,000
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Capital expenditures
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$
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593,000
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$
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26,000
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$
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44,000
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$
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16,000
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$
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(4,000)
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$
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-
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$
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675,000
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Assets
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$
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36,830,000
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$
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17,758,000
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$
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3,729,000
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$
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1,488,000
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$
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16,692,000
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$
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(26,000)
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$
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76,471,000
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Transition
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JDL
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Intersegment
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Suttle
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Networks
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Technologies
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Net2Edge
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Other
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Eliminations
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Total
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Nine Months Ended September 30, 2017
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Sales
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$
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24,888,000
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$
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27,831,000
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$
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10,504,000
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$
|
719,000
|
$
|
-
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$
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(661,000)
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$
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63,281,000
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Cost of sales
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24,447,000
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15,667,000
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|
7,699,000
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|
262,000
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-
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(74,000)
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|
48,001,000
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Gross profit
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441,000
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12,164,000
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|
2,805,000
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|
457,000
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-
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(587,000)
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|
15,280,000
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Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
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administrative expenses
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6,775,000
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|
11,481,000
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1,604,000
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2,244,000
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-
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(587,000)
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|
21,517,000
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Impairment loss
|
|
-
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|
-
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|
1,463,000
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|
154,000
|
|
-
|
|
-
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|
1,617,000
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Restructuring expense
|
|
2,326,000
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,326,000
|
|
Operating (loss) income
|
$
|
(8,660,000)
|
$
|
683,000
|
$
|
(262,000)
|
$
|
(1,941,000)
|
$
|
-
|
$
|
-
|
$
|
(10,180,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization
|
$
|
1,695,000
|
$
|
518,000
|
$
|
230,000
|
$
|
47,000
|
$
|
-
|
$
|
-
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$
|
2,490,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Capital expenditures
|
$
|
100,000
|
$
|
199,000
|
$
|
5,000
|
$
|
63,000
|
$
|
23,000
|
$
|
-
|
$
|
390,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
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|
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Transition
|
|
JDL
|
|
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|
|
Intersegment
|
|
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|
|
Suttle
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Networks
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Technologies
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|
Net2Edge
|
|
Other
|
|
Eliminations
|
|
Total
|
|
Nine Months Ended September 30, 2016
|
|
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Sales
|
$
|
33,424,000
|
$
|
30,294,000
|
$
|
12,360,000
|
$
|
1,434,000
|
$
|
-
|
$
|
(918,000)
|
$
|
76,594,000
|
|
Cost of sales
|
|
29,939,000
|
|
17,270,000
|
|
8,025,000
|
|
682,000
|
|
-
|
|
(157,000)
|
|
55,759,000
|
|
Gross profit
|
|
3,485,000
|
|
13,024,000
|
|
4,335,000
|
|
752,000
|
|
-
|
|
(761,000)
|
|
20,835,000
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative expenses
|
|
10,038,000
|
|
13,224,000
|
|
2,531,000
|
|
2,499,000
|
|
-
|
|
(742,000)
|
|
27,550,000
|
|
Pension liability adjustment gains
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,148,000)
|
|
-
|
|
(4,148,000)
|
|
Operating (loss) income
|
$
|
(6,553,000)
|
$
|
(200,000)
|
$
|
1,804,000
|
$
|
(1,747,000)
|
$
|
4,148,000
|
$
|
(19,000)
|
$
|
(2,567,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
$
|
1,819,000
|
$
|
658,000
|
$
|
189,000
|
$
|
88,000
|
$
|
-
|
$
|
-
|
$
|
2,754,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
$
|
1,414,000
|
$
|
185,000
|
$
|
128,000
|
$
|
18,000
|
$
|
220,000
|
$
|
(19,000)
|
$
|
1,946,000
|
|