Business Segments and Geographic Data

3 Months Ended

Mar. 31, 2014

Business Segments and Geographic Data [Abstract]

Business Segments and Geographic Data

Note 13

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 March 31, 2014 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	40,870		$	7,219		$	1,986		$	50,075
Costs of revenues		6,250			2,830			1,265			10,345
Gross profit		34,620			4,389			721			39,730
Gross profit %		84.7	%		60.8	%		36.3	%		79.3	%
Allocated operating expenses:
Engineering and product development		287			310			198			795
Selling and marketing expenses		27,157			4,011			457			31,625
Unallocated operating expenses		-			-			-			7,587
		27,444			4,321			655			40,007
Income (loss) from operations		7,176			68			66			(277	)
Interest and other financing income (expense), net		-			-			-			147
Net income (loss) before taxes	$	7,176		$	68		$	66		$	( 424	)

Three Months Ended March 31, 2013 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	49,060		$	5,955		$	2,201		$	57,216
Costs of revenues		7,517			2,931			1,418			11,866
Gross profit		41,543			3,024			783			45,350
Gross profit %		84.7	%		50.8	%		35.6	%		79.3	%
Allocated operating expenses:
Engineering and product development		218			324			231			773
Selling and marketing expenses		25,631			3,174			521			29,326
Unallocated operating expenses		-			-			-			5,659
		25,849			3,498			752			35,758
Income (loss) from operations		15,694			(474	)		31			9,592
Interest and other financing income, net		-			-			-			131
Net income (loss) before taxes	$	15,694		$	( 474	)	$	31		$	9,723

For the three months ended March 31, 2014 and 2013, net revenues by geographic area were as follows:

	Three Months Ended March 31,
	2014		2013
		(unadudited)		(unadudited)
North America 1	$	39,972	$	44,899
Asia Pacific 2		2,377		5,762
Europe (including Israel)		7,408		5,633
South America		318		922
	$	50,075	$	57,216
1 United States	$	34,766	$	38,007
1 Canada	$	5,206	$	6,892
2  Japan	$	698	$	4,262

As of March 31, 2014 and December 31, 2013, long-lived assets by geographic area were as follows:

	March 31, 2014		December 31, 2013
	(unaudited)
North America	$	10,157	$	9,119
Europe (including Israel)		1,297		1,370
South America		4		-
	$	11,458	$	10,489

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