Business Segments and Geographic Data

6 Months Ended

Jun. 30, 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 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 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. On June 22, 2015, the Company sold its XTRAC and VTRAC business and has classified the revenues and expenses of this business to discontinued operations. The domestic XTRAC business revenues from this business have historically been reported in our Physician Recurring business segment. Internationally, we sold our XTRAC-Velocity and VTRAC equipment to distributors which sales have been historically reported in our professional equipment segment. 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 June 30, 2015 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	17,538		$	1,695		$	691		$	19,924
Costs of revenues		4,079			652			184			4,915
Gross profit		13,459			1,043			507			15,009
Gross profit %		76.7	%		61.5	%		73.4	%		75.3	%
Allocated operating expenses:
Engineering and product development		301			39			49			389
Selling and marketing expenses		15,104			986			71			16,161
Unallocated operating expenses		-			-			-			4,971
		15,405			1,025			120			21,521
Income (loss) from continuing operations		(1,946	)		18			387			(6,512	)
Interest  and other financing income, net		-			-			-			56
Income (loss) from continuing operations before income taxes	$	(1,946	)	$	18		$	387		$	(6,456	)

Three Months Ended June 30, 2014 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	28,453		$	2,407		$	939		$	31,799
Costs of revenues		3,983			1,208			611			5,802
Gross profit		24,470			1,199			328			25,997
Gross profit %		86.0	%		49.8	%		34.9	%		81.8	%
Allocated operating expenses:
Engineering and product development		295			57			115			467
Selling and marketing expenses		23,225			949			217			24,391
Unallocated operating expenses		-			-			-			8,981
		23,520			1,006			332			33,839
Income (loss) from continuing operations		950			193			(4	)		(7,842	)
Interest and other financing expense, net		-			-			-			(287	)
Income (loss) from continuing operations before income taxes	$	950		$	193		$	(4	)	$	(8,129	)

Six Months Ended June 30, 2015 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	35,666		$	3,427		$	1,505		$	40,598
Costs of revenues		7,576			1,281			716			9,573
Gross profit		28,090			2,146			789			31,025
Gross profit %		78.8	%		62.6	%		52.4	%		76.4	%
Allocated operating expenses:
Engineering and product development		629			57			41			727
Selling and marketing expenses		29,826			2,090			178			32,094
Unallocated operating expenses		-			-			-			9,014
		30,455			2,147			219			41,835
Income (loss) from continuing operations		(2,365	)		(1	)		570			(10,810	)
Interest  and other financing expense, net		-			-			-			(604	)
Income (loss) from continuing operations before income taxes	$	(2,365	)	$	(1	)	$	570		$	(11,414	)

Six Months Ended June 30, 2014 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	69,323		$	4,779		$	1,711		$	75,813
Costs of revenues		10,233			2,102			928			13,263
Gross profit		59,090			2,677			783			62,550
Gross profit %		85.2	%		56.0	%		45.8	%		82.5	%
Allocated operating expenses:
Engineering and product development		573			122			236			931
Selling and marketing expenses		50,382			1,929			569			52,880
Unallocated operating expenses		-			-			-			15,490
		50,955			2,051			805			69,301
Income (loss) from continuing operations		8,135			626			(22	)		(6,751	)
Interest and other financing expense, net		-			-			-			(434	)
Income (loss) from continuing operations before income taxes	$	8,135		$	626		$	(22	)	$	(7,185	)

For the three and six months ended June 30, 2015 and 2014 (unaudited), net revenues by geographic area were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
North America 1	$	13,506	$	23,055	$	28,725	$	58,520
Asia Pacific 2		1,579		1,750		2,256		2,770
Europe (including Israel)		4,760		6,399		9,423		13,618
South America		79		595		194		905
	$	19,924	$	31,799	$	40,598	$	75,813
1 United States	$	11,995	$	19,864	$	25,126	$	50,123
1 Canada	$	1,511	$	3,191	$	3,573	$	8,397
2  Japan	$	104	$	132	$	195	$	319

As of June 30, 2015 and December 31, 2014, long-lived assets by geographic area were as follows:

	June 30, 2015		December 31, 2014
	(unaudited)
North America	$	204	$	265
Asia Pacific		29		16
Europe (including Israel)		1,070		1,127
South America		3		4
	$	1,306	$	1,412

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