Note 8 - Segment Reporting

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

8

Segment Reporting

Segment information reported in the tables below represents the operating segments of the Company organized in a manner consistent with which separate information is available and for which segment results are evaluated regularly by our chief operating decision-maker in assessing performance and allocating resources. Our activities are organized into

two

major segments: facilities and systems integration. Our facilities unit is involved in the design, project management and maintenance of data center and mission-critical business operations. Our systems integration unit integrates IT equipment for OEM vendors and customers to be used inside data center environments, including modular data centers. All of our revenues are derived from the U.S. market. Segment operating results reflect earnings before stock-based compensation, acquisition related expenses, other expenses, net, and provision for income taxes.

Revenue and operating results by reportable segment reconciled to reportable net income for the

three

-month periods ended

March 31, 2018

and

2017

and other segment-related information is as follows (in thousands):

	Three Month Periods
	ended March 31 ,
	201 8			201 7
Revenues:
Facilities	$	3,379		$	2,488
System integration services		1,470			1,901
Total revenues	$	4,849		$	4,389
Operating Income:
Facilities	$	705		$	558
System integration services		(520	)		(258	)
Consolidated operating income	$	185		$	300
Depreciation expense:
Facilities	$	8		$	9
System integration services		62			93
Consolidated depreciation expense	$	70		$	102
Interest expense
Facilities	$	59		$	43
System integration services		34			34
Consolidated interest expense	$	93		$	77

	March 31, 2018		Dec.31, 201 7
Total Assets
Facilities	$	3,443	$	2,682
System integration services		1,714		1,572
Other consolidated activities		1,986		2,473
Total assets	$	7,143	$	6,727

Other consolidated activities include assets

not

specifically attributable to each business segment including cash and cash equivalents, prepaid expenses and other assets that are managed at a corporate level.