BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

BUSINESS SEGMENT INFORMATION [Abstract]

BUSINESS SEGMENT INFORMATION

 

6.            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 sales and income from operations.  The following is a summary of key financial data (dollars in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Total segment sales:
North America	$	35,455		$	39,088		$	71,980		$	75,353
Asia		43,795			48,100			78,642			90,137
Europe		7,227			9,061			15,217			18,165
Total segment sales		86,477			96,249			165,839			183,655
Reconciling item:
Intersegment sales		(13,255	)		(17,076	)		(27,056	)		(33,079	)
Net sales	$	73,222		$	79,173		$	138,783		$	150,576
Income (loss) from operations:
North America	$	1,953		$	2,584		$	4,263		$	4,276
Asia		523			(3,017	)		(1,039	)		(1,129	)
Europe		(113	)		593			573			1,227
	$	2,363		$	160		$	3,797		$	4,374

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

Restructuring Charges - During the three and six months ended June 30, 2012, the Company recorded $0.2 million and $0.4 million, respectively, of restructuring charges.  These charges related to severance and equipment transportation costs associated with the Company's 2012 restructuring program, and were incurred by the Company's North America operating segment.

Litigation Charges - During the second quarter of 2011, the Company recorded $3.2 million of litigation charges related to the Halo and SynQor lawsuits.  These charges primarily impacted the Company's Asia operating segment.

Segment Sales - Segment sales are attributed to individual 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 net sales less operating costs and expenses.