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Business Segments
 3 Months Ended
Jun. 30, 2014
Business Segments

15. Business Segments

The Company reports 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 highly competitive 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 manufacturers. Its design portfolio includes a broad range of drive trains and power ratings of 2 MWs and higher. 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 highly competitive 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):

 

 

For the Three Months Ended June 30,

 

 

2014

 

 

2013

 

Revenues:

 

 

 

 

 

 

 

Wind

$

7,650

 

 

$

14,701

 

Grid

 

4,046

 

 

 

8,385

 

Total

$

11,696

 

 

$

23,086

 

 

 

For the Three Months Ended June 30,

 

 

2014

 

 

2013

 

Operating loss:

 

 

 

 

 

 

 

Wind

$

(3,480

)

 

$

(1,825

)

Grid

 

(6,407

)

 

 

(4,869

)

Unallocated corporate expenses

 

(2,780

)

 

 

(2,156

)

Total

$

(12,667

)

 

$

(8,850

)

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. 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 loss.

Unallocated corporate expenses primarily consist of stock-based compensation expense of $1.6 million, and restructuring charges of $1.2 million, for the three months ended June 30, 2014. Unallocated corporate expenses primarily consist of stock-based compensation expense of $2.1 million for the three months ended June 30, 2013.

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

 

June 30,

 

 

March 31,

 

 

2014

 

 

2014

 

Wind

$

44,814

 

 

$

36,701

 

Grid

 

47,403

 

 

 

54,342

 

Corporate assets

 

68,341

 

 

 

77,466

 

Total

$

160,558

 

 

$

168,509

 

 

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three months ended June 30, 2014 and 2013:

 

Three months ended

 

 

June 30,

 

 

2014

 

 

2013

 

INOX Wind Limited

 

48

%

 

 

15

%

Beijing JINGCHENG New Energy Co., Ltd

 

<10

%

 

 

35

%