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Business Segments
 6 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segments
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,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Wind
$
12,898

 
$
13,583

 
$
18,573

 
$
31,747

Grid
5,609

 
5,421

 
13,279

 
10,980

Total
$
18,507

 
$
19,004

 
$
31,852

 
$
42,727

 
Three months ended September 30,
 
Six months ended September 30,
 
2016
 
2015
 
2016
 
2015
Operating (loss) profit:
 
 
 
 
 
 
 
Wind
$
(1,235
)
 
$
(1,991
)
 
$
(4,264
)
 
$
(1,864
)
Grid
(5,262
)
 
(4,113
)
 
(10,577
)
 
(10,621
)
Unallocated corporate expenses
(653
)
 
(737
)
 
(1,653
)
 
(2,613
)
Total
$
(7,150
)
 
$
(6,841
)
 
$
(16,494
)
 
$
(15,098
)

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 in each of the three months ended September 30, 2016 and 2015, respectively, and stock-based compensation expense of $1.7 million and $1.8 million in the six months ended September 30, 2016 and 2015, respectively. Additionally, unallocated corporate expenses include an impairment charge of $0.7 million for the six months ended September 30, 2015.
Total assets for the two business segments as of September 30, 2016 and March 31, 2016 are as follows (in thousands):
 
September 30,
2016
 
March 31,
2016
Wind
$
26,390

 
$
34,389

Grid
39,200

 
36,255

Corporate assets
50,163

 
64,674

Total
$
115,753

 
$
135,318


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, 2016 and 2015:
 
Three months ended September 30,
 
Six months ended September 30,
 
2016
 
2015
 
2016
 
2015
INOX Wind Limited
68
%
 
66
%
 
51
%
 
55
%
Beijing JINGCHENG New Energy Co., Ltd
—
%
 
<10%

 
<10%

 
15
%