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Business Segments
 6 Months Ended
Sep. 30, 2012
Business Segments [Abstract]  
Business Segments

15. Business Segments

The Company reported its financial results in two reportable business segments: Wind and Grid. 

Through its Windtec Solutions, the Wind business segment enables manufacturers to field wind turbines with exceptional power output, reliability and affordability.  The Company supplies advanced power electronics and control systems, licenses its highly engineered wind turbine designs, and provides extensive customer support services to wind turbine manufactures. Its design portfolio includes a broad range of drive trains and power ratings up to 10 megawatts.  It provides a broad range of power electronics and software based control systems that are highly integrated and redesigned for optimized performance, efficiency, and grid compatibility.

Through its Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power with exceptional efficiency, reliability and affordability.  The Company provides transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which help the Company determine how its solutions can improve network performance.  These services often lead to sales of grid interconnection solutions for wind farms and solar power plants, power quality systems and transmission and distribution cable systems. 

The operating results for the two business segments are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

September 30,

 

 

September 30,

 

 

2012

 

2011

 

 

2012

 

2011

Revenues:

 

 

 

 

 

 

 

 

 

Wind

$
12,002 

$
13,449 

 

$
28,513 

$
17,712 

Grid

 
8,865 

 
7,351 

 

 
21,070 

 
12,146 

Total

$
20,867 

$
20,800 

 

$
49,583 

$
29,858 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

September 30,

 

 

September 30,

 

 

2012

 

2011

 

 

2012

 

2011

Operating (loss) income:

 

 

 

 

 

 

 

 

 

Wind

$
(6,449)

$
(16,336)

 

$
(5,148)

$
(40,705)

Grid

 
(6,572)

 
(7,645)

 

 
(11,915)

 
(18,197)

Unallocated corporate expenses

 
(1,949)

 
(27,144)

 

 
(4,035)

 
(30,549)

Total

$
(14,970)

$
(51,125)

 

$
(21,098)

$
(89,451)

 

 

The accounting policies of the business segments are the same as those for the consolidated Company.  The Company’s business segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities.  The Company evaluates performance based upon several factors, of which the primary financial measures are segment revenues and segment operating (loss) income. The disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating income.

Unallocated corporate expenses primarily consist of stock-based compensation expense of $2.0 million and $4.0 million for the three and six months ended September 30, 2012, respectively.  Unallocated corporate expenses primarily consist of the write-off of an advance payment to The Switch Engineering Oy of $20.6 million, which constituted a break-up fee resulting from the termination of the planned acquisition of The Switch due to adverse market conditions, and restructuring and impairment charges of $4.3 million for the three and six months ended September 30, 2011 and stock-based compensation expense of $2.1 million and $5.6 million for the three and six months ended September 30, 2011, respectively.

Total assets for the two business segments are as follows (in thousands):

 

 

 

 

 

 

 

 

September 30,

 

 

March 31,

 

 

2012

 

 

2012

Wind

$
60,065 

 

$
70,054 

Grid

 
80,826 

 

 
89,091 

Corporate assets

 
101,422 

 

 
95,911 

Total

$
242,313 

 

$
255,056 

 

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2012 and 2011: 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

September 30,

 

 

September 30,

 

 

2012

 

2011

 

 

2012

 

2011

 

Beijing JINGCHENG New Energy Co., Ltd.
26 

%

<10

%

 
22 

%

<10

%

INOX Wind Limited
19 

%
24 

%

 
17 

%
17 

%

Karara Mining Ltd.

<10

%

 -

%

 
13 

%

 -

%

Doosan Heavy Industries & Construction Co Ltd.

<10

%
17 

%

 

<10

%
16 

%