Operating Segments and Related Information

6 Months Ended

Jun. 30, 2013

Operating Segments and Related Information [Abstract]

Segment Reporting Disclosure [Text Block]

Operating Segments and Related Information

The Company's operations are focused on two primary business areas:  Spire Solar (comprised of solar equipment, solar systems and solar research) and Spire Biomedical (comprised of biomedical surface treatments and biophotonics research).  Spire Solar and Spire Biomedical operate out of the Company's facility in Bedford, Massachusetts. Each business area is independently managed and has separate financial results that are reviewed by the Board of Directors and Chief Executive Officer and the chief executive officers of each operating division.

During the first quarter of 2012, the Company began pursuing an exclusive sales process of our semiconductor business and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo Corporation. The Company reported the Semiconductor Business Unit as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2012. The Semiconductor Business Unit was previously reported as our optoelectronics segment. Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations and are not included in the table below. See Note 13 to the unaudited condensed consolidated financial statements.

The following table presents certain continuing operating division information in accordance with the provisions of ASC 280, Segments Reporting.

(in thousands)	Solar			Biomedical		Total Company
For the three months ended June 30, 2013
Net sales and revenues	$	1,892		$	1,682	3,574
Operating income (loss) from continuing operations	$	(1,938	)	$	170	(1,768		)
For the three months ended June 30, 2012
Net sales and revenues	$	4,881		$	1,739	6,620
Operating income (loss) from continuing operations	$	(1,999	)	$	212	(1,787		)
For the six months ended June 30, 2013
Net sales and revenues	$	3,338		$	3,474	$	6,812
Operating income (loss) from continuing operations	$	(4,730	)	$	360	$	(4,370	)
For the six months ended June 30, 2012
Net sales and revenues	$	10,734		$	3,361	$	14,095
Operating income (loss) from continuing operations	$	(3,543	)	$	147	$	(3,396	)

Operating income (loss) from continuing operations is net sales less cost of sales and selling, general and administrative expenses, but is not affected by non-operating income (expense), by income taxes or by net income (loss) from discontinued operations. In calculating operating income (loss) from continuing operations for individual business units, substantial administrative expenses incurred at the operating level that are common to more than one segment are allocated on a net sales basis. Certain corporate expenses of an operational nature are also allocated to the divisions based on factors including occupancy, employment, and purchasing volume. All intercompany transactions have been eliminated.

The following table shows net sales and revenues by geographic area (based on customer location):

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2013		%		2012		%		2013		%		2012		%
United States	$	2,261	63	%	$	2,352	35	%	$	4,534	66	%	$	4,949	35	%
Europe/Africa	454		13		444		7		790		12		2,686		19
Asia	662		19		3,824		58		1,271		19		6,407		46
Rest of the world	197		5		—		—		217		3		53		—
	$	3,574	100	%	$	6,620	100	%	$	6,812	100	%	$	14,095	100	%

Revenues from contracts with United States government agencies for the three months ended June 30, 2013 and 2012 were approximately $197 thousand and $448 thousand or 6% and 7% of total net sales and revenues, respectively.

Revenues from contracts with United States government agencies for the six months ended June 30, 2013 and 2012 were approximately $643 thousand and $872 thousand or 9% and 6% of total net sales and revenues, respectively.

Revenues from the delivery of biomedical services to two customers accounted for 20% and 11% of total net sales and revenues for the three month period ended June 30, 2013.

Revenues from the delivery of biomedical services to two customers accounted for 21% and 13% of total net sales and revenues for the six month period ended June 30, 2013.

Revenues from the delivery of solar equipment to two customers account for 22% and 13% of total net sales and revenues for the three month period ended June 30, 2013. Revenues from the delivery of biomedical services to one customer accounted for 12% of total net sales and revenues for the three month period ended June 30, 2013.

 Revenues from the delivery of solar equipment to four customers account for 13%, 13% , 13% and 10% of total net sales and revenues for the six month period ended June 30, 2012. Revenues from the delivery of biomedical services to one customer accounted for 11% of total net sales and revenues for the six month period ended June 30, 2012.

Three customers represented approximately 22%, 12% and 12% , respectively, of net accounts receivable, trade at June 30, 2013 and one customer represented approximately 24% of net accounts receivable, trade at December 31, 2012.