BUSINESS SEGMENT INFORMATION

12 Months Ended

Mar. 31, 2013

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

7. BUSINESS SEGMENT INFORMATION

In accordance with the provisions of FASB ASC 280-10, Segment Reporting, the Company has determined that it has only one operating segment, the X-ray product segment. This includes X-ray detection and imaging products used primarily for the detection of illegal drugs, weapons and explosives, and smuggled goods. The equipment is purchased by sophisticated government and commercial clients focused on the detection of organic material in complex backgrounds and the ability to see the contents of containers with precision.

Geographical Data

All of the Company’s export sales originate from the United States.  At March 31, 2013, approximately 5% of the Company’s assets were in foreign countries.  The foreign assets were comprised of cash in foreign banks, and inventory in international depots for field replacements or systems shipped internationally but not accepted by fiscal year end.

The following table shows the breakdown of net sales and contract revenues to international and domestic customers based upon customer’s country of domicile and the major regions of international activity:

Net Sales and Contract Revenues

	Fiscal Year
(Dollars in thousands)	2013				2012				2011
Domestic	$	123,652	66	%	$	133,441	66	%	$	190,769	68	%
International	63,028		34	%	70,111		34	%	87,807		32	%
Net Sales and Contract Revenues	$	186,680	100	%	$	203,552	100	%	$	278,576	100	%
Middle East & Africa			54	%			63	%			84	%
Americas — Non-US			29	%			20	%			2	%
Asia / Pacific			13	%			11	%			7	%
Europe			4	%			6	%			7	%

In fiscal 2012, the Company had international sales to one country which accounted for 11% of the total sales of the Company.  In fiscal 2013, international sales to one individual country did not exceed 10% of total sales.

Major Customers:  Sales to major customers (representing in excess of 10% of consolidated revenues) consisted of the following:

Fiscal 2013:   $44,850,000 and $30,874,000, respectively, to two customers.

Fiscal 2012:   $46,167,000 to one customer.

Fiscal 2011:   $82,634,000, $32,316,000 and $31,072,000, respectively, to three customers.

Domestically, the Company’s primary client base is comprised of agencies of the U.S. government. Approximately 63%, 62% and 65% of the Company’s sales in fiscal 2013, 2012, and 2011 respectively, were derived from either (i) contracting directly with the U.S. government, or (ii) contracting with contractors working directly with the U.S. government. Certain of the Company’s contracts with the U.S. government provide the U.S. government with the standard unilateral right to terminate these contracts for convenience.   In each of the fiscal years ended March 31, 2012 and March 31, 2011, one of the Company’s contracts with the U.S. government was terminated in whole or in part for convenience by the U.S. government.  These terminations did not result in any material losses to the Company.  There were no terminations for convenience in the fiscal year ended March 31, 2013.