| Segment Information |
NOTE 12 – SEGMENT INFORMATION
The Company classifies its businesses into two segments as follows:
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Electronics & Software: designs, develops and sells Intelligent Edge solutions that provide connectivity and power through PoE products and actionable intelligence to end devices in an IoT ecosystem through embedded and cloud-based management software. In addition, this segment continues to generate revenue from its traditional products consisting of, media converters, NICs, and Ethernet switches that offer the ability to affordably integrate the benefits of fiber optics into any data network; and
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·
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Services & Support: provides technology solutions that address prevalent IT challenges, including network resiliency, security products and services, network virtualization, and cloud migrations, IT managed services, wired and wireless network design and implementation, and converged infrastructure configuration, deployment and management.
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Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. “Other” includes non-allocated corporate overhead costs. As a result of our treatment of Suttle as discontinued operations, “Other” includes amounts previously allocated to Suttle that do not meet the criteria to be included in income from discontinued operations.
Information concerning the Company’s continuing operations in these two segments for the three-month periods ended March 31, 2021 and 2020 are as follows:
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Electronics &
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Services &
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Intersegment
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Software
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Support
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Other
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Eliminations
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Total
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Three Months Ended March 31, 2021
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Sales
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$
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8,365,000
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$
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1,938,000
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$
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-
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$
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(144,000)
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$
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10,159,000
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Cost of sales
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4,781,000
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1,162,000
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-
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-
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5,943,000
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Gross profit
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3,584,000
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776,000
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-
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(144,000)
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4,216,000
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Selling, general and
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administrative expenses
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3,608,000
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979,000
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777,000
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(144,000)
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5,220,000
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Acquisition-related costs
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-
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-
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1,143,000
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-
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1,143,000
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Operating loss
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(24,000)
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(203,000)
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(1,920,000)
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-
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(2,147,000)
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Other (expense) income
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(19,000)
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-
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6,000
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-
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(13,000)
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Loss before income tax
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$
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(43,000)
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$
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(203,000)
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$
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(1,914,000)
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$
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-
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$
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(2,160,000)
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Depreciation and amortization
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$
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68,000
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$
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154,000
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$
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38,000
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$
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-
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$
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260,000
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Capital expenditures
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$
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4,000
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$
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5,000
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$
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-
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$
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-
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$
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9,000
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Assets
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$
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14,571,000
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$
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7,950,000
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$
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30,614,000
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$
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(27,000)
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$
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53,108,000
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Electronics &
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Services &
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Intersegment
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Software
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Support
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Other
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Eliminations
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Total
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Three Months Ended March 31, 2020
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Sales
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$
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8,536,000
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$
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827,000
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$
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-
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$
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(200,000)
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$
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9,163,000
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Cost of sales
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4,807,000
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620,000
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-
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(1,000)
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5,426,000
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Gross profit
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3,729,000
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207,000
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-
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(199,000)
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3,737,000
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Selling, general and
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administrative expenses
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3,897,000
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328,000
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935,000
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(199,000)
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4,961,000
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Operating loss
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(168,000)
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(121,000)
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(935,000)
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-
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(1,224,000)
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Other income
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14,000
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-
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397,000
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-
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411,000
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Loss before income tax
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$
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(154,000)
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$
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(121,000)
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$
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(538,000)
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$
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-
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$
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(813,000)
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Depreciation and amortization
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$
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71,000
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$
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13,000
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$
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127,000
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$
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-
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$
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211,000
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Capital expenditures
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$
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43,000
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$
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-
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$
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13,000
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$
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-
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$
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56,000
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Assets
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$
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15,665,000
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$
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1,394,000
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$
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39,807,000
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$
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(27,000)
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$
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56,839,000
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