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Segment Reporting
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting

NOTE 10—SEGMENT REPORTING

 

The Company currently operates in three reportable operating segments:

 

  ● Energy & Security Sonar Solutions. The Company provides sonar and acoustic related solutions for energy, defense and commercial markets with a focus on underwater site security for strategic energy installations and other advanced acoustic systems and real-time embedded hardware and software development and production through its DSIT Solutions Ltd. (“DSIT”) subsidiary.
     
  ● Smart Grid Distribution Automation. These products and services are provided by the Company’s GridSenseTM subsidiaries (GridSense Inc. in the United States and GridSense Pty Ltd. and CHK GridSense Pty Ltd. in Australia - collectively “GridSense”) which develop, market and sell remote monitoring and control systems to electric utilities and industrial facilities worldwide.
     
  ● Machine-to-Machine Critical Asset Monitoring & Control (“M2M”). The M2M segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications. These activities are performed through the Company’s OmniMetrix subsidiary.

 

Other operations include certain IT activities (protocol management software for cancer patients and billing software) and outsourced consulting activities performed by the Company’s DSIT subsidiary as well as pipeline monitoring activities in the Company’s OmniMetrix subsidiary (for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies) that do not meet the quantitative thresholds under applicable accounting principles.

 

    Energy& Security Sonar Solutions     GridSense     M2M     Other     Total  
Three months ended March 31, 2015                                        
Revenues from external customers   $ 2,660     $ 908     $ 553     $ 497     $ 4,618  
Intersegment revenues     —       —       —       —       —  
Segment gross profit     605       277       340       297       1,519  
Depreciation and amortization     45       57       18       11       131  
Segment net income (loss) before income taxes     (294 )     (325 )     (278 )     105       (792 )
                                         
Three months ended March 31, 2014                                        
Revenues from external customers   $ 2,515     $ 963     $ 508     $ 468     $ 4,454  
Intersegment revenues     —       —       —       —       —  
Segment gross profit (loss)     686       185       312       247       1,430  
Depreciation and amortization     71       65       17       14       167  
Segment net loss before income taxes     (208 )     (973 )     (403 )     (21 )     (1,605 )

 

Reconciliation of Segment Income (Loss) to Consolidated Net Loss Before Income Taxes

 

    Three months ended
March 31,		  
    2014     2015  
Total net loss before income taxes for reportable segments   $ (1,584 )   $ (897 )
Other operational segment net income (loss) before income taxes     (21 )     105  
Total segment net loss before income taxes     (1,605 )     (792 )
Unallocated cost of corporate headquarters*     (1,043 )     (1,033 )
Unallocated benefit (cost) of DSIT headquarters     (26 )     10  
Consolidated loss before income taxes   $ (2,674 )   $ (1,815 )

 

* Includes stock compensation expense of $310 and $208 for the three month periods ended March 31, 2014 and 2015, respectively.