Business Segment and Geographic Data

12 Months Ended

Dec. 31, 2013

Business Segment and Geographic Data [Abstract]

Business Segment and Geographic Data

Note 14

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.

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:

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

	Year ended December 31, 2011
	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	125,581		$	829		$	5,672		$	132,082
Costs of revenues		23,309			456			2,531			26,296
Gross profit		102,272			373			3,141			105,786
Gross profit %		81.4	%		45.0	%		55.4	%		80.1	%
Allocated operating expenses:
Engineering and product development		837			27			193			1,057
Selling and marketing expenses		59,424			319			2,442			62,185
Unallocated operating expenses		-			-			-			45,192
		60,261			346			2,635			108,434
Income (loss) from operations		42,011			27			506			(2,648	)
Interest and other financing income (expense), net		-			-			-			(68	)
Net income (loss) before taxes	$	42,011		$	27		$	506		$	(2,716	)

For the years ended December 31, 2013, 2012 and 2011, net revenues by geographic area were as follows:

	Year Ended December 31,
	2013		2012		2011
North America 1	$	174,850	$	163,973	$	91,821
Asia Pacific 2		19,081		28,031		28,213
Europe (including Israel)		27,849		25,521		9,994
South America		2,884		3,126		2,054
	$	224,664	$	220,651	$	132,082
1 United States	$	112,635	$	135,950	$	75,341
1 Canada	$	62,215	$	28,023	$	16,480
2  Japan	$	11,556	$	21,134	$	25,924

For the years ended December 31, 2013, 2012 and 2011, long-lived assets by geographic area were as follows:

	Year Ended December 31,
	2013		2012		2011
North America	$	9,119	$	5,772	$	4,496
Asia Pacific		-		-		-
Europe (including Israel)		1,370		987		828
South America		-		-		-
	$	10,489	$	6,759	$	5,324