BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

BUSINESS SEGMENT INFORMATION [Abstract]

BUSINESS SEGMENT INFORMATION

11.  BUSINESS SEGMENT INFORMATION

The Company operates in one industry with three reportable operating segments, which are geographic in nature.  The segments consist of North America, Asia and Europe.  The primary criteria by which financial performance is evaluated and resources are allocated are revenues and operating income.  The following is a summary of key financial data (dollars in thousands):

	2011			2010			2009
Net Sales to External Customers:
North America	$	134,804		$	111,888		$	41,898
Asia		126,941			156,635			123,764
Europe		33,376			34,016			17,091
	$	295,121		$	302,539		$	182,753
Net Sales:
North America	$	149,114		$	125,383		$	51,189
Asia		177,815			196,243			144,572
Europe		34,597			35,150			18,110
Less intergeographic
revenues		(66,405	)		(54,237	)		(31,118	)
	$	295,121		$	302,539		$	182,753
Income (Loss) from Operations:
North America	$	9,026		$	4,181		$	(205	)
Asia		(3,480	)		9,357			(16,462	)
Europe		1,850			1,622			(684	)
	$	7,396		$	15,160		$	(17,351	)
Total Assets:
North America	$	115,552		$	110,984
Asia		148,950			155,414
Europe		12,409			10,774
	$	276,911		$	277,172
Capital Expenditures:
North America	$	1,121		$	870		$	353
Asia		1,733			1,371			1,979
Europe		74			186			25
	$	2,928		$	2,427		$	2,357
Depreciation and Amortization Expense:
North America	$	4,046		$	3,862		$	1,535
Asia		4,137			4,513			5,087
Europe		484			461			156
	$	8,667		$	8,836		$	6,778

Net sales from external customers are attributed to individual operating segments based on the geographic source of the billing for such customer sales.  Transfers between geographic areas include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States which are sold to Asia for further processing. Income (loss) from operations represents gross profit less operating expenses.

The following items are included in the income (loss) from operations presented above:

Litigation Charges – During the year ended December 31, 2011, the Company recorded $3.5 million of litigation charges related to the SynQor and Halo lawsuits.  During the year ended December 31, 2010, the Company recorded $8.1 million of litigation charges related to the SynQor lawsuit.  These charges impacted income from operations primarily within the Company's Asia reportable operating segment.

Impairment of Assets – During the third quarter of 2009, the Company conducted an interim valuation test related to the Company's goodwill by operating segment.  As a result of the reduction in fair value of the Asia operating segment, the Company recorded charges of $12.9 million related to the impairment of goodwill of its Asia operating segment during 2009.

Restructuring Charges – The Company incurred restructuring costs of $0.3 million during 2011 related to severance costs associated with the reorganization of its Cinch operations in the UK.  In connection with the closure of its Westborough, Massachusetts facility, the Company incurred $0.4 million of restructuring costs in 2009 related primarily to the facility lease obligation.

Gain on Sale of Property, Plant & Equipment – During the year ended December 31, 2009, the Company recognized a previously-deferred $4.6 million pre-tax gain in the North America operating segment from the 2007 sale of a property in Jersey City, New Jersey.   

Entity-Wide Information

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line (dollars in thousands).

	2011		2010		2009
Net Sales by Geographic Area:
United States	$	134,804	$	111,888	$	41,898
Macao		126,941		156,635		123,764
Germany		17,937		20,027		13,959
United Kingdom		11,927		10,747		-
Czech Republic		3,512		3,242		3,132
Consolidated net sales	$	295,121	$	302,539	$	182,753
Net Sales by Major Product Line:
Interconnect	$	107,346	$	101,059	$	32,447
Modules		90,475		61,092		54,323
Magnetics		87,104		127,664		86,326
Circuit protection		10,196		12,724		9,657
Consolidated net sales	$	295,121	$	302,539	$	182,753

Net sales from external customers are attributed to individual countries based on the geographic source of the billing for such customer sales.

The following is a summary of long-lived assets by geographic area as of December 31, 2011 and 2010 (dollars in thousands):

	2011		2010
Long-lived Assets by Geographic Location:
United States	$	30,204	$	30,904
People's Republic of China (PRC)		18,611		20,999
All other foreign countries		2,553		2,794
Consolidated long-lived assets	$	51,368	$	54,697

Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area.

The territory of Hong Kong became a Special Administrative Region (“SAR”) of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact this will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC.  A significant portion of the Company's manufacturing operations and approximately 41% of its identifiable assets are located in Asia.

Net Sales to Major Customers

In 2011, there were two customers with sales in excess of ten percent of consolidated net sales.  The combined revenue from these two customers was $65.7 million during the year ended December 31, 2011, representing 22.3% of total sales.  In 2010, the Company had sales to two customers in excess of ten percent of consolidated net sales.  The combined revenue from these two customers was $74.6 million during the year ended December 31, 2010, representing 24.7% of total sales.  The Company had sales to three customers in excess of ten percent of consolidated net sales in 2009.  The combined revenue from these three customers was $71.9 million during the year ended December 31, 2009, representing 39.4% of total sales.  Sales related to these significant customers were primarily reflected in the North America and Asia operating segments during 2011 and 2010, and in the Asia operating segment in 2009.