Business Segment and Geographic Data

12 Months Ended

Dec. 31, 2014

Business Segment and Geographic Data [Abstract]

Business Segment and Geographic Data

Note 15

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. For a period during 2014 the Company had a fourth operating segment, Clinics segment. This represented our LCA business which is classified as discontinued operations as of December 31, 2014. See also Note 2, Discontinued Operations.

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. Interest and other financing income (expense), net is also not allocated to the operating segments. 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, 2014

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	120,931		$	34,240		$	8,370		$	163,541
Costs of revenues		20,307			12,718			5,594			38,619
Gross profit		100,624			21,522			2,776			124,922
Gross profit %		83.2	%		62.9	%		33.2	%		76.4	%
Allocated operating expenses:
Engineering and product development		1,105			1,177			804			3,086
Selling and marketing expenses		89,637			16,347			1,185			107,169
Unallocated operating expenses		-			-			-			35,711
		90,742			17,524			1,989			145,966
Income (loss) from continuing operations		9,882			3,998			787			(21,044	)
Interest  and other financing expense, net		-			-			-			(4,387	)
Income (loss) from continuing operations before taxes	$	9,882		$	3,998		$	787		$	(25,431	)

Year ended December 31, 2013

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	188,259		$	28,548		$	7,857		$	224,664
Costs of revenues		26,794			13,022			5,219			45,035
Gross profit		161,465			15,526			2,638			179,629
Gross profit %		85.8	%		54.4	%		33.6	%		80.0	%
Allocated operating expenses:
Engineering and product development		1,100			1,371			835			3,306
Selling and marketing expenses		112,898			12,681			1,949			127,528
Unallocated operating expenses		-			-			-			26,750
		113,998			14,052			2,784			157,584
Income (loss) from operations		47,467			1,474			(146	)		22,045
Interest  and other financing income, net		-			-			-			702
Net income (loss) before taxes	$	47,467		$	1,474		$	(146	)	$	22,747

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 expense, net		-			-			-			(351	)
Net income (loss) before taxes	$	55,848		$	(1,632	)	$	392		$	26,927

For the years ended December 31, 2014, 2013 and 2012, net revenues by geographic area (determined by ship to locations) were as follows:

	Year Ended December 31,
	2014		2013		2012
North America 1	$	123,161	$	174,850	$	163,973
Asia Pacific 2		9,870		19,081		28,031
Europe (including Israel)		29,227		27,849		25,521
South America		1,283		2,884		3,126
	$	163,541	$	224,664	$	220,651
1 United States	$	109,203	$	149,713	$	135,950
1 Canada	$	13,953	$	25,137	$	28,023
2  Japan	$	1,750	$	12,226	$	21,134

For the years ended December 31, 2014, 2013 and 2012, long-lived assets by geographic area were as follows:

	Year Ended December 31,
	2014		2013		2012
North America	$	12,385	$	9,119	$	5,772
Asia Pacific		286		-		-
Europe (including Israel)		1,127		1,370		987
South America		4		-		-
	$	13,802	$	10,489	$	6,759