XML 31 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Segments and Geographic Data
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segments and Geographic Data

Note 14

Business Segments and Geographic Data:

 

The Company has organized its business into three operating segments to 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 mainly from the sales of skincare products; the operating results of the Neova product line were included thru September 15, 2016, the closing date of the asset sale of the Neova product line. See Note 1, Acquisitions and Dispositions, above for more information. The Professional segment generates revenues from the sale of equipment, such as medical and esthetic light and heat based 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. 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 September 30, 2016 (unaudited)

 

    CONSUMER     PHYSICIAN
RECURRING		     PROFESSIONAL     TOTAL  
Revenues   $ 6,142     $ 840     $ 276     $ 7,258  
Costs of revenues     909       461       117       1,487  
Gross profit     5,233       379       159       5,771  
Gross profit %     85.2 %     45.1 %     57.6 %     79.5 %
                                 
Allocated operating expenses:                                
Engineering and product development     243       83       -       326  
Selling and marketing expenses     3,921       591       17       4,529  
                                 
Impairment     3,518       -       -       3,518  
Loss on sale of assets     -       1,731       -       1,731  
Unallocated operating expenses     -       -       -       2,894  
      7,682       2,405       17       12,998  
Income (loss) from continuing operations     (2,449 )     (2,026 )     142       (7,227 )
                                 
Interest  and other financing income, net     -       -       -       88  
                                 
Income (loss) from continuing operations before income taxes   $ (2,449 )   $ (2,026 )   $ 142     $ (7,139 )

 

Three Months Ended September 30, 2015 (unaudited)

 

    CONSUMER     PHYSICIAN
RECURRING		     PROFESSIONAL     TOTAL  
Revenues   $ 15,994     $ 1,315     $ 689     $ 17,998  
Costs of revenues     3,348       525       468       4,341  
Gross profit     12,646       790       221       13,657  
Gross profit %     79.1 %     60.1 %     32.1 %     75.9 %
                                 
Allocated operating expenses:                                
Engineering and product development     245       19       (25 )     239  
Selling and marketing expenses     13,198       1,009       70       14,277  
                                 
Unallocated operating expenses     -       -       -       3,450  
      13,443       1,028       45       17,966  
Income (loss) from continuing operations     (797 )     (238 )     176       (4,309 )
                                 
Interest and other financing expense, net     -       -       -       (332 )
                                 
Income (loss) from continuing operations before income taxes   $ (797 )   $ (238 )   $ 176     $ (4,641 )

 

Nine Months Ended September 30, 2016 (unaudited)

 

    CONSUMER     PHYSICIAN
RECURRING		     PROFESSIONAL     TOTAL  
Revenues   $ 25,724     $ 3,302     $ 708     $ 29,734  
Costs of revenues     5,412       1,853       330       7,595  
Gross profit     20,312       1,449       378       22,139  
Gross profit %     79.0 %     43.9 %     53.4 %     74.5 %
                                 
Allocated operating expenses:                                
Engineering and product development     779       204       -       983  
Selling and marketing expenses     16,677       2,045       35       18,757  
                                 
Impairment     3,518       -       -       3,518  
Loss on sale of assets     -       1,731       843       2,574  
Unallocated operating expenses     -       -       -       9,791  
      20,974       3,980       878       35,623  
Income (loss) from continuing operations     (662 )     (2,531 )     (500 )     (13,484 )
                                 
Interest  and other financing expense, net     -       -       -       (537 )
                                 
Income (loss) from continuing operations before income taxes   $ (662 )   $ (2,531 )   $ (500 )   $ (14,021 )

 

Nine Months Ended September 30, 2015 (unaudited)

 

    CONSUMER     PHYSICIAN
RECURRING		     PROFESSIONAL     TOTAL  
Revenues   $ 51,659     $ 4,742     $ 2,194     $ 58,595  
Costs of revenues     10,922       1,807       1,185       13,914  
Gross profit     40,737       2,935       1,009       44,681  
Gross profit %     78.9 %     61.9 %     46.0 %     76.3 %
                                 
Allocated operating expenses:                                
Engineering and product development     874       77       16       967  
Selling and marketing expenses     43,023       3,099       249       46,371  
                                 
Unallocated operating expenses     -       -       -       12,463  
      43,897       3,176       265       59,801  
Income (loss) from continuing operations     (3,160 )     (241 )     744       (15,120 )
                                 
Interest and other financing expense, net     -       -       -       (936 )
                                 
Income (loss) from continuing operations before income taxes   $ (3,160 )   $ (241 )   $ 744     $ (16,056 )

 

For the three and nine months ended September 30, 2016 and 2015 (unaudited), net revenues by geographic area were as follows:

 

    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2016     2015     2016     2015  
North America 1   $ 4,257     $ 11,103     $ 18,376     $ 39,827  
Asia Pacific 2     744       1,147       2,180       3,403  
Europe (including Israel)     2,246       5,716       9,147       15,139  
South America     11       32       31       226  
    $ 7,258     $ 17,998     $ 29,734     $ 58,595  
                                 
1 United States   $ 3,528     $ 10,281     $ 15,405     $ 35,407  
1 Canada   $ 277     $ 822     $ 1,506     $ 4,420  
2 Japan   $ 8     $ 190     $ 8     $ 385  

 

As of September 30, 2016 and December 31, 2015, long-lived assets by geographic area were as follows:

 

    September30, 2016     December 31, 2015  
    (unaudited)        
North America   $ 91     $ 169  
Asia Pacific     31       41  
Europe (including Israel)     929       1,096  
    $ 1,051     $ 1,306  

 

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