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Note 8 - Segments and Geographic Information
 6 Months Ended
Jun. 30, 2012
Segment Reporting Disclosure [Text Block]
NOTE 8.  SEGMENTS AND GEOGRAPHIC INFORMATION

The Company has two reportable segments: product-based sales, featuring military, general commercial and industrial lighting, and pool 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):

   
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Solutions:
                       
Net sales
  $ 2,105     $ 3,344     $ 3,745     $ 5,946  
Cost of sales
    1,678       2,947       3,240       5,000  
Gross profit
    427       397       505       946  
Operating expenses:
                               
Sales and marketing
    370       372       684       721  
General and administrative
    164       238       314       475  
Total operating expenses
    534       610       998       1,196  
Segment loss
  $ (107 )   $ (213 )   $ (493 )   $ (250 )
                                 
Products:
                               
Net sales
  $ 5,567     $ 4,849     $ 9,229     $ 7,707  
Cost of sales
    4,290       3,698       7,245       5,946  
Gross profit
    1,277       1,151       1,984       1,761  
Operating expenses (income):
                               
Research and development
    (61 )     (131 )     (15 )     134  
Sales and marketing
    890       1,213       1,751       2,732  
General and administrative
    61       66       142       172  
Total operating expenses
    890       1,148       1,878       3,038  
Segment income (loss)
  $ 387     $ 3     $ 106     $ (1,277 )
                                 
Reconciliation of segment income (loss) to net loss:
                               
Segment income (loss):
                               
Solutions
  $ (107 )   $ (213 )   $ (493 )   $ (250 )
Products
    387       3       106       (1,277 )
Total segment income (loss)
    280       (210 )     (387 )     (1,527 )
Operating expenses:
                               
Sales and marketing
    130       51       226       118  
General and administrative
    889       740       1,812       1,975  
Valuation of equity instruments
    -       -       -       56  
Total operating expenses
    1,019       791       2,038       2,149  
Other expense
    (158 )     (168 )     (336 )     (301 )
Loss before income taxes
    (897 )     (1,169 )     (2,761 )     (3,977 )
Provision for income  taxes
    (3 )     (4 )     (6 )     (9 )
Net loss
  $ (900 )   $ (1,173 )   $ (2,767 )   $ (3,986 )

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

   
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
Products segment net sales:
                       
Pool and commercial products
  $ 4,905     $ 3,674     $ 7,195     $ 6,022  
Government products/R&D services
    662       1,175       2,034       1,685  
Total products segment net sales
    5,567       4,849       9,229       7,707  
                                 
Products segment cost of sales:
                               
Pool and commercial products
    3,554       2,564       5,185       4,364  
Government products/R&D services
    736       1,134       2,060       1,582  
Total products segment cost of sales
    4,290       3,698       7,245       5,946  
                                 
Products segment gross profit (loss):
                               
Pool and commercial products
    1,351       1,110       2,010       1,658  
Government products/R&D services
    (74 )     41       (26 )     103  
Total products segment gross profit
  $ 1,277     $ 1,151     $ 1,984     $ 1,761  

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

   
Three months ended
June 30,
   
Six months ended
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
                         
United States
  $ 6,937     $ 6,960     $ 11,724     $ 11,513  
International
    735       1,233       1,250       2,140  
Net sales
  $ 7,672     $ 8,193     $ 12,974     $ 13,653  

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

   
June 30,
2012
   
December 31,
2011
 
United States
  $ 3,328     $ 3,747  
International
    59       57  
Long-lived assets, net
  $ 3,387     $ 3,804