XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.4
Note 16 - Business Segments
 9 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
16.
Business Segments
 
The Company reports its financial results in
two
reportable business segments: Grid and Wind.
 
Through the Company's power grid offerings, the Grid business segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute power with exceptional efficiency, reliability, security and affordability through its transmission planning services, power electronics, and superconductor-based systems. 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.
 
Through the Company's wind power offerings, the Wind business segment enables manufacturers to field wind turbines with exceptional power output, reliability and affordability.  The Company provides advanced power electronics and control system products, engineered designs, and support services. 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
megawatts ("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.
 
The operating results for the
two
business segments are as follows (in thousands):
 
   
Three Months Ended December 31,
    
Nine Months Ended December 31,
  
   
2020
    
2019
    
2020
    
2019
  
Revenues:
      
 
      
 
      
 
      
 
Grid   $
17,086
     $
15,232
     $
51,149
     $
36,577
  
Wind    
6,546
      
2,683
      
14,812
      
9,120
  
Total   $
23,632
     $
17,915
     $
65,961
     $
45,697
  
 
   
Three Months Ended December 31,
    
Nine Months Ended December 31,
  
   
2020
    
2019
    
2020
    
2019
  
Operating profit (loss):
      
 
      
 
      
 
      
 
Grid   $
(5,826
 )   $
(3,732
 )   $
(8,388
 )   $
(9,723
 )
Wind    
147
      
(2,297
 )    
(1,956
 )    
(6,015
 )
Unallocated corporate expenses    
(3,579
 )    
(590
 )    
(5,337
 )    
(1,236
 )
Total
   $
(9,258
 )   $
(6,619
 )   $
(15,681
 )   $
(16,974
 )
 
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 consist primarily of loss on contingent consideration of
$2.7
 million in both the 
three
and
nine
months ended
December 31, 2020
. Additionally, unallocated corporate expenses consist of stock-based compensation expense of $
0.8
million and
$0.6
 
million in the
three
months ended 
December 31, 2020
and
2019
, respectively, and $
2.6
 million and
$1.2
 million in the 
nine
months ended 
December 31, 2020
and
2019
, respectively.
 
Total assets for the
two
business segments as of 
December 31, 2020
and 
March 31, 2020
are as follows (in thousands):
 
   
December 31, 2020
    
March 31, 2020
  
Grid   $
83,623
     $
44,044
  
Wind    
6,140
      
14,250
  
Corporate assets    
85,284
      
65,815
  
Total
   $
175,047
     $
124,109