Geographic and Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

18. Geographic and Segment Information

The Company sells its products on a worldwide basis with its principal markets listed in the table below where information on product revenue and funded research and development revenue is summarized by geographic area for the Company as a whole for each of the years ended December 31:

	2011		2010		2009
	(dollars in thousands)
Product revenue:
United States	$	6,856	$	4,703	$	3,908
Singapore		1,066		170		23
Hong Kong		736		684		251
Japan		337		238		612
Korea		9		180		103
China		163		318		13
Taiwan		92		231		50
Malaysia		53		64		5
Other Pacific Rim		13		13		—
Germany		203		4		12
United Kingdom		128		58		149
Netherlands		125		164		147
Austria		28		—		—
France		57		3		—
Switzerland		78		—		—
Other Europe		27		43		56
Canada		125		168		59
Middle East		34		33		202
Russia		73		2		3
Turkey		9		—		463
Rest of World		68		103		207
Total product revenue	$	10,280	$	7,179	$	6,263
Funded research and development revenue:
United States	$	13	$	1,234	$	2,043
Total funded research and development revenue	$	13	$	1,234	$	2,043
Total revenue	$	10,293	$	8,413	$	8,306

Revenues are attributed to regions based on the location of customers.

The Company operates in two business segments, Test and Measurement Instrumentation and New Energy. The Test and Measurement Instrumentation segment designs, manufactures, markets and services high performance test and measurement instruments and systems, wafer characterization tools for the semiconductor and solar industries, tensile stage systems for materials testing at academic and industrial settings, and computer-based balancing systems for aircraft engines. The New Energy segment is focused on commercializing direct methanol fuel cells. The Company’s principal operations are located in North America.

The accounting policies of the Test and Measurement Instrumentation and New Energy segments are similar to those described in the summary of significant accounting policies (Note 2). The Company evaluates performance based on profit or loss from operations before income taxes. Inter-segment sales and expenses are not significant.

Total product revenues contributed of the Test and Measurement Instrumentation products segment and their percentage of total product revenues for each of the years ended December 31 are shown below:

	2011				2010				2009
	Sales		%		Sales		%		Sales		%
	(dollars in thousands)
Aviation Balancing Systems	$	5,359	52.1	%	$	3,007	41.9	%	$	2,768	44.2	%
Precision Instruments		3,983	38.8			2,804	39.1			2,619	41.8
Semiconductor and Solar Metrology		938	9.1			1,368	19.0			876	14.0
Total	$	10,280	100.0	%	$	7,179	100.0	%	$	6,263	100.0	%

In the Test and Measurement Instrumentation segment, the U.S. Air Force accounted for $2.3 million or 22.4% of total revenue in 2011, $1.6 million or 22.3% of total product revenue in 2010, and $1.2 million or 19.2% of total product revenue in 2009. The largest commercial customer in 2011 was a Southeast Asian distributor, who accounted for $1.1 million or 10.7% of total product revenue in 2011. The largest commercial customer in 2010 was a Chinese distributor, who accounted for $560 thousand, or 7.8% of total product revenue in 2010. The largest commercial customer in 2009 was a domestic US defense contractor, who accounted for $618 thousand or 9.9% of total product revenue in 2009.

In the New Energy segment, the DOE accounted for $6 thousand or 49.7% of total funded research and development revenue in 2011, $944 thousand or 77.0% of total funded research and development revenue in 2010, and $2.0 million or 100.0% of total funded research and development revenue in 2009.

Summarized financial information concerning the Company’s reportable segments is shown in the following table. The “Other” column includes corporate related items and items such as income taxes or unusual items, which are not allocated to reportable segments. The “Reconciling Items” column includes non-controlling interests in a consolidated entity. In addition, segments’ non-cash items include any depreciation in reported profit or loss. The New Energy segment figures include the Company’s direct micro fuel cell operations. As a result of the suspension of the MTI Micro operations, the New Energy segment will continue to be included in these tables during 2012 as long as they remain in our consolidated operations. The activity presented will be reflective of the minimal activity anticipated to be incurred by MTI Micro during 2012.

	Test and										Condensed
(Dollars in thousands)	Measurement								Reconciling		Consolidated
	Instrumentation		New Energy			Other			Items		Totals
Year Ended December 31, 2011
Product revenue	$	10,280	$	—		$	—		$	—	$	10,280
Funded research and development revenue		—		13			—			—		13
Research and product development expenses		1,243		223			—			—		1,466
Selling, general and administrative expenses		2,306		993			1,695			—		4,994
Segment profit (loss) from operations before income
taxes and non-controlling interest		2,476		(1,460	)		(916	)		—		100
Segment profit (loss)		2,476		(1,462	)		634			738		2,386
Total assets		3,038		173			3,191			—		6,402
Capital expenditures		170		—			5			—		175
Depreciation		90		210			7			—		307

	Test and										Condensed
(Dollars in thousands)	Measurement								Reconciling		Consolidated
	Instrumentation		New Energy			Other			Items		Totals
Year Ended December 31, 2010
Product revenue	$	7,179	$	—		$	—		$	—	$	7,179
Funded research and development revenue		—		1,234			—			—		1,234
Research and product development expenses		959		2,896			—			—		3,855
Selling, general and administrative expenses		1,984		1,950			1,086			—		5,020
Segment profit (loss) from operations before income
taxes and non-controlling interest		886		(3,639	)		(639	)		—		(3,392	)
Segment profit (loss)		886		(3,639	)		(643	)		1,638		(1,758	)
Total assets		1,751		639			1,211			—		3,601
Capital expenditures		47		—			—			—		47
Depreciation		81		385			15			—		481
	Test and										Condensed
(Dollars in thousands)	Measurement								Reconciling		Consolidated
	Instrumentation		New Energy			Other			Items		Totals
Year Ended December 31, 2009
Product revenue	$	6,263	$	—		$	—		$	—	$	6,263
Funded research and development revenue		—		2,043			—			—		2,043
Research and product development expenses		965		4,479			—			—		5,444
Selling, general and administrative expenses		1,822		105			1,357			—		3,284
Segment profit (loss) from operations before income
taxes and non-controlling interest		381		(3,171	)		(839	)		57		(3,572	)
Segment profit (loss)		381		(3,171	)		(631	)		322		(3,099	)
Total assets		1,949		1,061			731			—		3,741
Capital expenditures		—		7			—			—		7
Depreciation		103		496			61			—		660

The following table presents the details of “Other” segment (loss) profit for each of the years ended December 31:

	2011			2010			2009
	(dollars in thousands)
Corporate and other (expenses) income:
Depreciation	$	(7	)	$	(15	)	$	(61	)
Salaries and benefits		(984	)		(161	)
Interest income		—			—			68
Gain (loss) on derivatives		73			(2	)		(29	)
Income tax benefit (expense)		1,550			(4	)		(208	)
Other (expense) income, net		2			(461	)		(401	)
Total income (expense)	$	634		$	(643	)	$	(631	)