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Segments and Geographic Information
 12 Months Ended
Dec. 31, 2011
Segments and Geographic Information [Abstract]  
Segments and Geographic Information
  14. Segments and Geographic Information

The Company has two reportable segments: product-based sales featuring pool lighting and general commercial lighting, each of which markets and sells lighting systems, and solutions-based sales providing turnkey, high-quality, energy-efficient lighting application alternatives. The Company’s products are sold through a combination of direct sales employees, independent sales representatives, and various distributors in different geographic markets throughout the world. The Company’s solutions-based sales are designed to enhance total value by positively impacting customers’ profitability, the environment, and the communities it serves. These solutions are sold through the Company’s direct sales employees as well as our SRC subsidiary, and include not only its proprietary energy-efficient lighting solutions, but also sourced lighting systems, energy audits, and service agreements.

The following summarizes the Company’s reportable segment data for periods indicated (in thousands):

 

                         
    Years ended December 31,  
    2011     2010     2009  

Solutions:

                        

Net sales

   $ 9,563     $ 19,763     $ —    

Cost of sales

     8,041       16,332       —    
   

 

 

    

 

 

    

 

 

  

Gross profit

     1,522       3,431       —    

Operating expenses:

                        

Sales and marketing

     1,332       1,407       —    

General and administrative

     939       1,377       —    
   

 

 

    

 

 

    

 

 

  

Total operating expenses

     2,271       2,784       —    
   

 

 

    

 

 

    

 

 

  

Segment (loss) income

   $ (749 )    $ 647     $ —    
   

 

 

    

 

 

    

 

 

  
       

Products:

                        

Net sales

   $ 16,189     $ 15,366     $ 12,489  

Cost of sales

     12,540       12,394       10,449  
   

 

 

    

 

 

    

 

 

  

Gross profit

     3,649       2,972       2,040  

Operating expenses:

                        

Research and development

     (515 )      (202 )      319  

Sales and marketing

     4,629       4,796       5,843  

General and administrative

     318       293       546  

Loss on impairment

     —         156       —    

Restructuring

     —         26       125  
   

 

 

    

 

 

    

 

 

  

Total operating expenses

     4,432       5,069       6,833  
   

 

 

    

 

 

    

 

 

  

Segment loss

   $ (783 )    $ (2,097 )    $ (4,793 ) 
   

 

 

    

 

 

    

 

 

  
       

Reconciliation of segment income (loss) to net loss:

                        

Segment (loss) income:

                        

Solutions

   $ (749 )    $ 647     $ —    

Products

     (783 )      (2,097 )      (4,793 ) 
   

 

 

    

 

 

    

 

 

  

Total segment loss

     (1,532 )      (1,450 )      (4,793 ) 

Operating expenses:

                        

Sales and marketing

     239       212       201  

General and administrative

     3,805       4,445       4,787  

Valuation of equity instruments

     56       1,812       —    

Change in estimate of contingent liabilities

     (411 )      —         —    
   

 

 

    

 

 

    

 

 

  

Total operating expenses

     3,689       6,469       4,988  

Other expense

     (836 )      (592 )      (26 ) 
   

 

 

    

 

 

    

 

 

  

Net loss from continuing operations before income taxes

     (6,057 )      (8,511 )      (9,807 ) 

Benefit from (Provision for) income taxes

     2       (6 )      (7 ) 
   

 

 

    

 

 

    

 

 

  

Net loss from continuing operations

     (6,055 )      (8,517 )      (9,814 ) 

Loss from discontinued operations

     —         —         (1,201 ) 
   

 

 

    

 

 

    

 

 

  

Net loss

   $ (6,055 )    $ (8,517 )    $ (11,015 ) 
   

 

 

    

 

 

    

 

 

  

 

The following table provides additional business unit gross profitability detail for the Company’s Products-based business segment for the periods indicated (in thousands):

 

                         
    Years ended December 31,  
    2011     2010     2009  

Products segment net sales:

                        

Pool and commercial products

   $ 11,911     $ 12,265     $ 11,561  

Government products/R&D services

     4,278       3,101       928  
   

 

 

    

 

 

    

 

 

  

Total products segment net sales

     16,189       15,366       12,489  
   

 

 

    

 

 

    

 

 

  
       

Products segment cost of sales:

                        

Pool and commercial products

     8,560       7,988       7,248  

Government products/R&D services

     3,980       3,104       838  

Unallocated manufacturing overhead 1

     —         1,302       2,363  
   

 

 

    

 

 

    

 

 

  

Total products segment cost of sales

     12,540       12,394       10,449  
   

 

 

    

 

 

    

 

 

  
       

Products segment gross profit:

                        

Pool and commercial products

     3,351       4,277       4,313  

Government products/R&D services

     298       (3 )      90  

Unallocated manufacturing overhead 1

     —         (1,302 )      (2,363 ) 
   

 

 

    

 

 

    

 

 

  

Total products segment gross profit

   $ 3,649     $ 2,972     $ 2,040  
   

 

 

    

 

 

    

 

 

  

 

1) Unallocated manufacturing overhead is defined as follows:

 

  a. costs associated with the operation and shut down of the Solon manufacturing facility which has been relocated to the Mexico facility; and

 

  b. specific expenses which are not attributable to a specific business unit but rather are calculated on the total products business segment. Expenses include Solon manufacturing facility rent, Solon manufacturing depreciation, inventory reserves and accruals and Solon manufacturing support payroll and severance.

A geographic summary of net sales from continuing operations is as follows (in thousands):

 

                         
    Years ended December 31,  
    2011     2010     2009  

United States Domestic

   $ 21,730     $ 31,314     $ 7,930  

International

     4,022       3,815       4,559  
   

 

 

    

 

 

    

 

 

  

Net sales

   $ 25,752     $ 35,129     $ 12,489  
   

 

 

    

 

 

    

 

 

  

A geographic summary of long-lived assets, which consists of property and equipment, goodwill, and intangible assets, is as follows (in thousands):

 

                 
    December 31,  
    2011     2010  

United States

   $ 3,747     $ 4,676  

International

     57       119  
   

 

 

    

 

 

  

Long-lived assets, net

   $ 3,804     $ 4,795