Business Segments and Geographic Data

3 Months Ended

Mar. 31, 2015

Business Segments and Geographic Data [Abstract]

Business Segments and Geographic Data

Note 14

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. For a period during 2014 through January 31, 2015 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:

Three Months Ended March 31, 2015 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	18,129		$	7,558		$	2,462		$	28,149
Costs of revenues		3,497			2,777			1,648			7,922
Gross profit		14,632			4,781			814			20,227
Gross profit %		80.7	%		63.3	%		33.1	%		71.9	%
Allocated operating expenses:
Engineering and product development		338			321			96			755
Selling and marketing expenses		14,719			5,191			222			20,132
Unallocated operating expenses		-			-			-			4,729
		15,057			5,512			318			25,616
Income (loss) from continuing operations		(425	)		(731	)		496			(5,389	)
Interest  and other financing expense, net		-			-			-			(2,551	)
Income (loss) from continuing operations before taxes	$	(425	)	$	(731	)	$	496		$	(7,940	)

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, net		-			-			-			(147	)
Income (loss) before taxes	$	7,176		$	68		$	66		$	(424	)

For the three months ended March 31, 2015 and 2014, net revenues by geographic area (determined by ship to location) were as follows:

	Three Months Ended March 31,
	2015		2014
	(unaudited)		(unaudited)
North America 1	$	20,764	$	39,972
Asia Pacific 2		2,371		2,377
Europe (including Israel)		4,899		7,408
South America		115		318
	$	28,149	$	50,075
1 United States	$	18,678	$	34,766
1 Canada	$	2,062	$	5,206
2  Japan	$	91	$	698

As of March 31, 2015 and December 31, 2014, long-lived assets by geographic area were as follows:

	March 31, 2015		December 31, 2014
	(unaudited)
North America	$	13,169	$	12,385
Asia Pacific		310		286
Europe (including Israel)		1,065		1,127
South America		3		4
	$	14,547	$	13,802

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