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Business Segments
 6 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Business Segments

15. Business Segments

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

Through the Company’s 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 manufacturers. The Company’s design portfolio includes a broad range of drive trains and power ratings of 2 MWs and higher. The Company 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 the Company’s 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 sales process is enabled by transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which helps 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 Company also sells ship protection products to the U.S. Navy through its Grid business segment.

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

 

Three months ended September 30,

 

 

Six months ended September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wind

$

13,583

 

 

$

7,462

 

 

$

31,747

 

 

$

15,113

 

Grid

 

5,421

 

 

 

4,993

 

 

 

10,980

 

 

 

9,038

 

Total

$

19,004

 

 

$

12,455

 

 

$

42,727

 

 

$

24,151

 

 

 

Three months ended September 30,

 

 

Six months ended September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Operating loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wind

$

(1,991

)

 

$

(14,611

)

 

$

(1,864

)

 

$

(18,091

)

Grid

 

(4,113

)

 

 

(6,559

)

 

 

(10,621

)

 

 

(12,966

)

Unallocated corporate expenses

 

(737

)

 

 

(5,230

)

 

 

(2,613

)

 

 

(8,010

)

Total

$

(6,841

)

 

$

(26,400

)

 

$

(15,098

)

 

$

(39,067

)

 

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 $0.7 million and $1.8 million in the three and six months ended September 30, 2015, respectively, and an impairment charge of $0.7 million for the six months ended September 30, 2015.  Unallocated corporate expenses primarily consist of stock-based compensation expense of $1.5 million and $3.1 million, and restructuring and impairment charges of $3.7 million and $4.9 million, for the three and six months ended September 30, 2014, respectively.

Total assets for the two business segments as of September 30, 2015 and March 31, 2015 are as follows (in thousands):

 

 

September 30,

 

 

March 31,

 

 

2015

 

 

2015

 

Wind

$

34,391

 

 

$

41,947

 

Grid

 

38,821

 

 

 

42,482

 

Corporate assets

 

61,048

 

 

 

49,396

 

Total

$

134,260

 

 

$

133,825

 

 

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, 2015 and 2014:

 

 

Three months ended September 30,

 

 

Six months ended September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

INOX Wind Limited

 

66

%

 

 

48

%

 

 

55

%

 

 

48

%

RES American Construction, Inc.

—

%

 

 

16

%

 

—

%

 

<10

%

Beijing JINGCHENG New Energy Co., Ltd

<10

%

 

—

%

 

 

15

%

 

<10

%