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Segment Information
 9 Months Ended
Mar. 31, 2015
Segment Information  
Segment Information

 

9. Segment Information

 

The Company has determined that it operates in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and anesthesia systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). The Company also has a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses, expenses related to stock issuances and legal, audit and other professional service fees not allocated to product segments. Both the Security and Healthcare divisions comprise primarily end-user businesses, while the Optoelectronics and Manufacturing division primarily supplies components and subsystems to original equipment manufacturers, including to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values.  All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies of the Form 10-K for the fiscal year ended June 30, 2014.

 

The following tables present the operations and identifiable assets by industry segment (in thousands):

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March  31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Revenues (1) — by Segment:

 

 

 

 

 

 

 

 

 

Security division

 

$
95,007

 

$
99,164

 

$
298,748

 

$
349,608

 

Healthcare division

 
52,188

 
59,383

 
161,081

 
176,710

 

Optoelectronics and Manufacturing division, including intersegment revenues

 
66,331

 
65,291

 
214,000

 
199,912

 

Intersegment revenues elimination

 
(9,570

)
(8,463

)
(27,191

)
(34,629

)

Total

 

$
203,956

 

$
215,375

 

$
646,638

 

$
691,601

 

 

 

 

Three Months Ended
March  31,

 

Nine Months Ended
March  31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Operating income (loss) — by Segment:

 

 

 

 

 

 

 

 

 

Security division

 

$
14,213

 

$
13,266

 

$
40,984

 

$
50,926

 

Healthcare division

 
4,084

 
3,707

 
11,312

 
11,258

 

Optoelectronics and Manufacturing division

 
3,414

 
5,008

 
10,300

 
13,701

 

Corporate

 
(3,488

)
(3,498

)
(11,888

)
(13,748

)

Eliminations (2)

 
(201

)
(28

)
(184

)
(957

)

Total

 

$
18,022

 

$
18,455

 

$
50,524

 

$
61,180

 

 

 

 

June 30,
2014

 

March 31,
2015

 

Assets (1) — by Segment:

 

 

 

 

 

Security division

 

$
535,306

 

$
508,172

 

Healthcare division

 
190,612

 
207,511

 

Optoelectronics and Manufacturing division

 
169,084

 
172,247

 

Corporate

 
133,836

 
123,359

 

Eliminations (2)

 
(4,652

)
(5,359

)

Total

 

$
1,024,186

 
1,005,930

 

 

 

(1)

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows:

 

a)

For the three months ended March 31, 2014 and 2015, one customer accounted for 16% and 14% of total net revenues, respectively. For the nine months ended March 31, 2014 and 2015, one customer accounted for 15% and 13% of total net revenues, respectively; and a different customer accounted for 10% of net revenues for the nine months ended March 31, 2015.

 

b)

At March 31, 2015, no customer accounted for greater than 10% of the accounts receivable. At June 30, 2014, one customer accounted for 13% of accounts receivable.

 

(2)

Eliminations within operating income primarily reflect the change in the elimination of intercompany profit in inventory not-yet-realized. Eliminations in assets reflect the amount of intercompany profits in inventory as of the balance sheet date. Such intercompany profit will be realized when inventory is shipped to the external customers of the Security and Healthcare divisions.