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GEOGRAPHIC AND SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
GEOGRAPHIC AND SEGMENT INFORMATION
GEOGRAPHIC AND SEGMENT INFORMATION 

Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors.

Prior to the first quarter of 2017, we disclosed only one reporting segment. Beginning in 2017, our reportable segments are disclosed as principally organized and managed as three operating segments: Core, OEM and Advanced Energy. We adopted reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the growth in Advanced Energy and the differing behavior of the Core and OEM product lines. The Corporate & Other category includes unallocated corporate, operational, research and development and marketing costs which were not specifically attributed to any reportable segment. Net assets are shared, therefore, not allocated to the reportable segments. The OEM segment is primarily development contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred.

Summarized financial information with respect to reportable segments is as follows:
 
Three Months Ended June 30, 2017
 
Core
 
OEM
 
Advanced Energy
 
Corporate (Other)
 
Total
Sales
$
7,488

 
$
498

 
$
1,813

 
$

 
$
9,799

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
2,710

 
205

 
(1,250
)
 
(2,971
)
 
(1,306
)
 
 
 
 
 
 
 
 
 
 
Interest expense, net

 

 

 
(36
)
 
(36
)
Change in fair value of derivative liabilities

 

 

 
38

 
38

Income tax expense

 

 

 
4

 
4

Depreciation and amortization

 

 

 
178

 
178

 
Three Months Ended June 30, 2016
 
Core
 
OEM
 
Advanced Energy
 
Corporate (Other)
 
Total
Sales
$
6,881

 
$
1,648

 
$
766

 
$

 
$
9,295

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
1,836

 
1,151

 
(1,090
)
 
(2,407
)
 
(510
)
 
 
 
 
 
 
 
 
 
 
Interest expense, net

 

 

 
(50
)
 
(50
)
Change in fair value of derivative liabilities

 

 

 
41

 
41

Income tax expense

 

 

 

 

Depreciation and amortization

 

 

 
173

 
173

 
Six Months Ended June 30, 2017
 
Core
 
OEM
 
Advanced Energy
 
Corporate (Other)
 
Total
Sales
$
14,263

 
$
1,505

 
$
2,420

 
$

 
$
18,188

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
5,023

 
708

 
(2,971
)
 
(5,803
)
 
(3,043
)
 
 
 
 
 
 
 
 
 
 
Interest expense, net

 

 

 
(67
)
 
(67
)
Change in fair value of derivative liabilities

 

 

 
126

 
126

Income tax expense

 

 

 
9

 
9

Depreciation and amortization

 

 

 
356

 
356

 
Six Months Ended June 30, 2016
 
Core
 
OEM
 
Advanced Energy
 
Corporate (Other)
 
Total
Sales
$
13,359

 
$
2,589

 
$
1,122

 
$

 
$
17,070

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
2,958

 
1,808

 
(2,624
)
 
(4,645
)
 
(2,503
)
 
 
 
 
 
 
 
 
 
 
Interest expense, net

 

 

 
(88
)
 
(88
)
Change in fair value of derivative liabilities

 

 

 
128

 
128

Income tax expense

 

 

 

 

Depreciation and amortization

 

 

 
355

 
355



We derive revenues from four major product lines: Electrosurgical, Cauteries, Lighting and Other products. We do not review or analyze our four major product lines below net sales. Sales for the product lines are summarized as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(In thousands)
2017
 
2016
 
2017
 
2016
Sales by Product Line
 
 
 
 
 
 
 
Electrosurgical
$
6,206

 
$
5,078

 
$
11,536

 
$
9,330

Cauteries
1,873

 
1,720

 
3,528

 
3,554

Lighting
948

 
800

 
1,393

 
1,306

Other
772

 
1,697

 
1,731

 
2,880

Total
$
9,799

 
$
9,295

 
$
18,188

 
$
17,070



International sales represented approximately 11.1% and 13.7% of total revenues for the three and six months ended June 30, 2017, respectively, as compared with 16.6% and 15.9% of total revenues for the three and six months ended June 30, 2016. Substantially all of these sales are denominated in U.S. dollars. Revenue by geographic region, based on the "ship to" location on the invoice are as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(In thousands)
2017
 
2016
 
2017
 
2016
Sales by Domestic and International
 
 
 
 
 
 
 
Domestic
$
8,708

 
$
7,757

 
$
15,700

 
$
14,372

International
1,091

 
1,538

 
2,488

 
2,698

Total
$
9,799

 
$
9,295

 
$
18,188

 
$
17,070