BUSINESS SEGMENT INFORMATION

12 Months Ended

Mar. 31, 2015

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, 2015, approximately 4% of the Company’s assets were in foreign countries.  The foreign assets were comprised of cash in foreign banks, inventory in international depots for field replacements and systems shipped internationally but not accepted by fiscal year end.

The following table shows the breakdown of net sales and contract revenues from 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)	2015				2014				2013
Domestic	$	52,130	41	%	$	94,427	50	%	$	123,652	66	%
International	74,620		59	%	95,822		50	%	63,028		34	%
Net Sales and Contract Revenues	$	126,750	100	%	$	190,249	100	%	$	186,680	100	%
Middle East & Africa			63	%			72	%			54	%
Americas — Non-US			15	%			11	%			29	%
Asia / Pacific			16	%			11	%			13	%
Europe			6	%			6	%			4	%

In fiscal 2015, the Company had international sales to one country which accounted for 16% of the total sales of the Company.  In fiscal 2014, the Company had international sales to one country which accounted for 15% 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 2015:   $26,771,000 and $16,212,000, respectively, to two customers.

Fiscal 2014:   $33,886,000, $25,863,000 and $25,078,000, respectively, to three customers.

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

Domestically, the Company’s primary client base is comprised of agencies of the U.S. government. Approximately 37%, 46% and 63% of the Company’s sales in fiscal 2015, 2014, and 2013 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.   There were no terminations for convenience in the fiscal years ended March 31, 2015, 2014 or 2013.