Business Segment and Geographic Data

6 Months Ended

Jun. 30, 2013

Business Segment and Geographic Data [Abstract]

Business Segment and Geographic Data

Note 10

Business Segments and Geographic Data:

The Company organized 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:

Three Months Ended June 30, 2013

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	48,673		$	7,376		$	2,016		$	58,065
Costs of revenues		7,174			3,014			1,202			11,390
Gross profit		41,499			4,362			814			46,675
Gross profit %		85.3	%		59.1	%		40.4	%		80.4	%
Allocated operating expenses:
Engineering and product development		279			317			218			814
Selling and marketing expenses		26,703			3,233			532			30,468
Unallocated operating expenses		-			-			-			6,268
		26,982			3,550			750			37,550
Income from operations		14,517			812			64			9,125
Interest and other financing income (expense), net		-			-			-			(134	)
Net income before taxes	$	14,517		$	812		$	64		$	8,991

Three Months Ended June 30, 2012

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	50,464		$	5,274		$	3,168		$	58,906
Costs of revenues		8,169			2,605			1,581			12,355
Gross profit		42,295			2,669			1,587			46,551
Gross profit %		83.8	%		50.6	%		50.1	%		79.0	%
Allocated operating expenses:
Engineering and product development		240			275			245			760
Selling and marketing expenses		27,544			2,421			1,103			31,068
Unallocated operating expenses		-			-			-			9,243
		27,784			2,696			1,348			41,071
Income (loss) from operations		14,511			(27	)		239			5,480
Interest and other financing income (expense), net		-			-			-			(401	)
Net income (loss) before taxes	$	14,511		$	( 27	)	$	239		$	5,079

Six Months Ended June 30, 2013

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	97,733			13,331		$	4,217		$	115,281
Costs of revenues		14,691			5,945			2,620			23,256
Gross profit		83,042			7,386			1,597			92,025
Gross profit %		85.0	%		55.4	%		37.9	%		79.8	%
Allocated operating expenses:
Engineering and product development		497			641			449			1,587
Selling and marketing expenses		52,334			6,407			1,053			59,794
Unallocated operating expenses		-			-			-			11,927
		52,831			7,048			1,502			73,308
Income from operations		30,211			338			95			18,717
Interest  and other financing income (expense), net		-			-			-			(3	)
Net income before taxes	$	30,211		$	338		$	95		$	18,714

Six Months Ended June 30, 2012

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	92,665		$	10,347		$	6,167		$	109,179
Costs of revenues		14,941			5,284			3,364			23,589
Gross profit		77,724			5,063			2,803			85,590
Gross profit %		83.9	%		48.9	%		45.4	%		78.4	%
Allocated operating expenses:
Engineering and product development		477			585			456			1,518
Selling and marketing expenses		49,693			4,950			2,260			56,903
Unallocated operating expenses		-			-			-			16,362
		50,170			5,535			2,716			74,783
Income from operations		27,554			(472	)		87			10,807
Interest and other financing income (expense), net		-			-			-			(631	)
Net income before taxes	$	27,554		$	( 472	)	$	87		$	10,176

For the three and six months ended June 30, 2013 and 2012, net revenues by geographic area were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
North America 1	$	42,033	$	43,948	$	86,932	$	82,636
Asia Pacific 2		9,440		8,466		15,202		13,773
Europe (including Israel)		5,861		6,245		11,494		11,453
South America		731		247		1,653		1,317
	$	58,065	$	58,906	$	115,281	$	109,179
1 United States	$	37,329	$	37,470	$	75,336	$	70,093
2  Japan	$	7,452	$	6,847	$	11,715	$	10,174

As of June 30, 2013 and December 31, 2012, long-lived assets by geographic area were as follows:

	June 30, 2013		December 31, 2012
	(unaudited)
North America	$	7,660	$	5,772
Asia Pacific		-		-
Europe (including Israel)		1,197		987
South America		-		-
	$	8,857	$	6,759

The Company discusses segmental details in its Management Discussion and Analysis found elsewhere in this Quarterly Report on Form 10-Q.