Business Segment and Geographic Data

12 Months Ended

Dec. 31, 2012

Business Segment and Geographic Data [Abstract]

Business Segment and Geographic Data

Note 14

Business Segment and Geographic Data:

Effective December 13, 2011, the Company reorganized its business into three operating segments to better align its organization based upon the Company's management structure, products and services offered, markets served and types of customers, as follows: The Consumer segment derives its revenues from the design, development, manufacturing and selling of long-term hair reduction and acne consumer products. The Physician Recurring segment derives its revenues from the XTRAC procedures performed by dermatologists, the sales of skincare products, the sales of surgical disposables and accessories to hospitals and surgery centers and on the repair, maintenance and replacement parts on our various products. The Professional segment generates revenues from the sale of equipment, such as lasers, medical and esthetic light and heat based products and LED products. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance.

Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Unallocated assets include cash and cash equivalents, prepaid expenses and deposits.

The following tables reflect results of operations from our business segments for the periods indicated below:

Year ended December 31, 2012

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	188,425		$	21,284		$	10,942		$	220,651
Costs of revenues		28,965			11,512			6,165			46,642
Gross profit		159,460			9,772			4,777			174,009
Gross profit %		84.6	%		45.9	%		43.7	%		78.9	%
Allocated operating expenses:
Engineering and product development		876			1,201			837			2,914
Selling and marketing expenses		102,736			10,203			3,548			116,487
Unallocated operating expenses		-			-			-			27,330
		103,612			11,404			4,385			146,731
Income (loss) from operations		55,848			(1,632	)		392			27,278
Interest and other financing income (expense), net		-			-			-			(351	)
Net income (loss) before taxes	$	55,848		$	( 1,632	)	$	392		$	26,927

Year ended December 31, 2011

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	125,581		$	829		$	5,672		$	132,082
Costs of revenues		23,309			456			2,531			26,296
Gross profit		102,272			373			3,141			105,786
Gross profit %		81.4	%		45.0	%		55.4	%		80.1	%
Allocated operating expenses:
Engineering and product development		837			27			193			1,057
Selling and marketing expenses		59,424			319			2,442			62,185
Unallocated operating expenses		-			-			-			45,192
		60,261			346			2,635			108,434
Income (loss) from operations		42,011			27			506			(2,648	)
Interest and other financing income (expense), net		-			-			-			(68	)
Net income (loss) before taxes	$	42,011		$	27		$	506		$	(2,716	)

Year ended December 31, 2010

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	66,655		$	-		$	3,416		$	70,071
Costs of revenues		15,039			-			1,426			16,465
Gross profit		51,616			-			1,990			53,606
Gross profit %		77.4	%		-	%		58.3	%		76.5	%
Allocated operating expenses:
Engineering and product development		585			-			254			839
Selling and marketing expenses		27,470			-			1,480			28,950
Unallocated operating expenses		-			-			-			5,646
		28,055			-			1,734			35,435
Income from operations		23,561			-			256			18,171
Interest and other financing income (expense), net		-			-			-			(283	)
Net income before taxes	$	23,561		$	-		$	256		$	17,888

For the years ended December 31, 2012, 2011 and 2010, net revenues by geographic area were as follows:

	Year Ended December 31,
	2012		2011		2010
North America 1	$	163,973	$	91,821	$	34,971
Asia Pacific 2		28,031		28,213		30,199
Europe (including Israel)		25,521		9,994		3,604
South America		3,126		2,054		1,297
	$	220,651	$	132,082	$	70,071
1 United States	$	135,950	$	75,341	$	33,138
2 Japan	$	21,134	$	25,924	$	29,530

For the years ended December 31, 2012, 2011 and 2010, long-lived assets by geographic area were as follows:

	Year Ended December 31,
	2012		2011		2010
North America 1	$	5,772	$	4,496	$	4
Asia Pacific 2		-		-		-
Europe (including Israel)		987		828		755
South America		-		-		-
	$	6,759	$	5,324	$	759