Note 14 - Business Segments

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(14) Business Segments

We have four operating segments, structured by differences in products and services, that are regularly reviewed by our chief operating decision maker to make decisions about allocating resources and assessing segment performance. The segment performance is evaluated at segment operating income which is defined as gross profit less selling, general and administrative expenses and research and development expenses. General corporate expenses, including costs associated with various support functions such as human resources, information technology, finance and accounting, and general and administrative costs, are allocated to the reportable segments primarily on the basis of segment gross margin. Our four operating segments have been aggregated into three reportable segments based on the authoritative guidance. We aggregated our Other Products and Services operating segment into the Industrial Analyzers Products and Services segment based on minimal business activity and materiality.

The Package Testing segment provides customers with the ability to assess package performance, shelf-life, package improvement, cost reduction, sustainability and product safety using Modified Atmosphere Packaging and other technologies. The Permeation segment includes instruments and services that measure the rate at which various gases and vapors permeate through a variety of materials. The Industrial Analyzers and Other segment includes advanced gas analysis and monitoring instrumentation used in applications such as oil and gas exploration, beverage and specialty gas analysis, industrial hygiene and safety, food safety, environmental air monitoring and homeland security.

The accounting policies of the reportable segments are the same as those described in Note 1. There were no significant intersegment revenue for the years ended December 31, 2015

, 2014

and 2013

.

Segment information for the years ended December 31, 2015

, 2014

and 2013

are as follows (expressed in thousands):

	Package Testing		Permeation		Industrial Analyzers and Other			Unallocated - Corporate			Consolidated
December 31, 2015:
Revenue	$	26,583	$	25,069	$	9,572		$	-		$	61,224
Gross profit		14,445		14,415		4,364			-			33,224
Income/(Loss) before income taxes		2,703		4,527		(1,722	)		(1,049	)		4,459
Capital expenditures		951		517		149			-			1,617
Depreciation and amortization		1,545		789		126			-			2,460
Interest expense		119		-		-			-			119
Intangible assets, net		7,053		1,869		64			-			8,986
December 31, 2014:
Revenue	$	28,071	$	23,380	$	13,024		$	-		$	64,475
Gross profit		13,850		14,985		7,279			-			36,114
Income/(Loss) before income taxes		1,515		4,296		818			(3,171	)		3,458
Capital expenditures		630		653		132			-			1,415
Depreciation and amortization		1,715		730		110			-			2,555
Interest expense		186		-		-			-			186
Intangible assets, net		8,781		1,954		96			-			10,831
December 31, 2013:
Revenue	$	25,241	$	21,395	$	10,472		$	-		$	57,108
Gross profit		11,919		13,438		5,912			-			31,269
Income/(Loss) before income taxes		679		3,338		407			-			4,424
Capital expenditures		667		970		167			-			1,804
Depreciation and amortization		1,689		629		115			-			2,433
Interest expense		299		-		-			-			299
Intangible assets, net		10,986		1,656		76			-			12,718
Total assets as of December 31, 2015	$	27,918	$	15,648	$	3,853		$	-		$	47,419
Total assets as of December 31, 2014	$	25,633	$	21,071	$	5,805		$	-		$	52,509

Property, Plant and Equipment, net of accumulated depreciation, by geographic location as of December 31, 2015

, 2014

and 2013

is as follows (expressed in thousands):

	2015		2014		2013
United States	$	4,232	$	4,010	$	4,035
Foreign countries:
Germany		285		336		309
Denmark		1,353		1,020		1,049
Other European counties		125		196		334
Total foreign countries		1,763		1,552		1,692
Consolidated total	$	5,995	$	5,562	$	5,727

The following table summarizes total revenue, based upon the region to which revenue to external customers were made for fiscal years 2015

, 2014

and 2013

(expressed in thousands).

			Years Ended December 31,
	2015		2014		2013
Domestic revenue	$	20,872	$	19,836	$	19,052
Foreign revenue:
Europe		23,673		26,324		23,966
Asia		12,762		14,166		10,481
Other		3,917		4,149		3,609
Total foreign revenue		40,352		44,639		38,056
Total revenue	$	61,224	$	64,475	$	57,108

Our products are marketed outside of North America through our offices in foreign locations and various independent representatives.