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Business Segments
 9 Months Ended
Dec. 31, 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 designed 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

 

 

Nine months ended

 

 

December 31,

 

 

December 31,

 

 

2012

 

2011

 

 

2012

 

2011

Revenues:

 

 

 

 

 

 

 

 

 

Wind

$
6,808 

$
10,125 

 

$
35,321 

$
27,836 

Grid

 
10,609 

 
7,933 

 

 
31,679 

 
20,080 

Total

$
17,417 

$
18,058 

 

$
67,000 

$
47,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

December 31,

 

 

December 31,

 

 

2012

 

2011

 

 

2012

 

2011

Operating (loss) income:

 

 

 

 

 

 

 

 

 

Wind

$
(5,365)

$
(14,014)

 

$
(10,514)

$
(54,719)

Grid

 
(6,705)

 
(6,313)

 

 
(18,620)

 
(24,511)

Unallocated corporate expenses

 
(8,546)

 
(6,242)

 

 
(12,580)

 
(36,790)

Total

$
(20,616)

$
(26,569)

 

$
(41,714)

$
(116,020)

 

 

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 $1.9 million and $6.0 million, respectively and restructuring and impairment charges of $6.7 million and $6.8 million, respectively, for the three and nine months ended December 31, 2012.  For the three and nine months ended December 31, 2011, unallocated corporate expenses primarily consist of restructuring and impairment charges of $4.1 million and $8.4 million, respectively, and stock-based compensation expense of $2.1 million and $7.7 million, respectively. In addition, the nine months ended December 31, 2011 includes expense of $20.6 million for the write-off of an advanced payment to The Switch.

 

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

 

 

 

 

 

 

 

 

December 31,

 

 

March 31,

 

 

2012

 

 

2012

Wind

$
69,221 

 

$
70,054 

Grid

 
72,714 

 

 
89,091 

Corporate assets

 
83,384 

 

 
95,911 

Total

$
225,319 

 

$
255,056 

 

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and nine months ended December 31, 2012 and 2011: 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

December 31,

 

 

December 31,

 

 

2012

 

2011

 

 

2012

 

2011

 

CG Power Solutions UK Ltd.
20.8 

%

 -

%

 

< 10

%

 -

%

E.ON Climate & Renewables
19.4 

%

 -

%

 

< 10

%

 -

%

INOX Wind Limited
18.9 

%
26.5 

%

 
17.3 

%
20.5 

%

Beijing JINGCHENG New Energy Co., Ltd.

< 10

%

< 10

%

 
16.7 

%

< 10

%

Doosan Heavy Industries & Construction Co Ltd.

< 10

%
12.1 

%

 

< 10

%
14.8 

%

Ergon Energy Corporation Limited

 -

%
10.6 

%

 

 -

%

< 10

%