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Segment Reporting
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

NOTE 11—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 such as gas pipelines and backup generators. 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 and control of corrosion 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		     Smart Grid
Distribution
Automation		     M2M     Other     Total  
Six months ended June 30, 2015                                        
Revenues from external customers   $ 5,748     $ 1,610     $ 1,113     $ 954     $ 9,425  
Intersegment revenues     —       —       —       —       —  
Segment gross profit     1,790       317       634       487       3,228  
Depreciation and amortization     90       113       35       22       260  
Impairments     —       850       —       —       850  
Segment net income (loss) before income taxes     (204 )     (1,893 )     (700 )     13       (2,784 )
                                         
Six months ended June 30, 2014                                        
Revenues from external customers   $ 5,037     $ 2,209     $ 1,056     $ 875     $ 9,177  
Intersegment revenues     —       —       —       —       —  
Segment gross profit     1,145       551       564       446       2,706  
Restructuring and related charges     —       102       77       19       198  
Depreciation and amortization     145       131       35       24       335  
Segment net loss before income taxes     (778 )     (1,778 )     (851 )     (60 )     (3,467 )
                                         
Three months ended June 30, 2015                                        
Revenues from external customers   $ 3,088     $ 702     $ 560     $ 457     $ 4,807  
Intersegment revenues     —       —       —       —       —  
Segment gross profit     1,185       40       294       190       1,709  
Depreciation and amortization     45       56       17       11       129  
Impairments     —       850       —       —       850  
Segment net income (loss) before income taxes     90       (1,568 )     (422 )     (92 )     (1,992 )
                                         
Three months ended June 30, 2014                                        
Revenues from external customers   $ 2,522     $ 1,246     $ 548     $ 407     $ 4,723  
Intersegment revenues     —       —       —       —       —  
Segment gross profit     459       366       252       199       1,276  
Restructuring and related charges     —       102       77       19       198  
Depreciation and amortization     74       66       18       10       168  
Segment net loss before income taxes     (570 )     (805 )     (448 )     (39 )     (1,862 )

 

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

 

    Six months ended June 30,     Three months ended June 30,  
    2014     2015     2014     2015  
Total net loss before income taxes for reportable segments   $ (3,407 )   $ (2,797 )   $ (1,823 )   $ (1,900 )
Other operational segment net loss before income taxes     (60 )     13       (39 )     (92 )
Total segment net loss before income taxes     (3,467 )     (2,784 )     (1,862 )     (1,992 )
Unallocated cost of corporate headquarters*     (1,985 )     (1,890 )     (942 )     (856 )
Provision for loss – channel partner     (649 )     —       (649 )     —  
Unallocated cost of DSIT headquarters     (88 )     (66 )     (62 )     (77 )
Consolidated loss before income taxes   $ (6,189 )   $ (4,740 )   $ (3,515 )   $ (2,925 )

 

* Includes stock compensation expense of $550 and $376 for the six month periods ended June 30, 2014 and 2015 and $240 and $168 for the three month periods ended June 30, 2014 and 2015, respectively.