SEGMENT AND RELATED INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 7 - SEGMENT AND RELATED INFORMATION:

Financial information by segment:

The operating businesses of the Company are segregated into two reportable segments, network solutions and test and measurement. The network solutions segment is comprised primarily of the operations of the Company’s subsidiary, Microlab. The test and measurement segment is comprised primarily of the Company’s operations (Noisecom) and the operations of its subsidiary, Boonton.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company allocates resources and evaluates the performance of segments based on income or loss from operations, excluding interest, corporate expenses and other income (expenses).

Financial information by reportable segment as of and for the years ended December 31, 2016 and 2015 is presented below:

	2016			2015
Net revenues by segment:
Network solutions	$	20,198,377		$	21,534,831
Test and measurement		11,128,350			11,574,275
Total consolidated net revenues and net revenues of reportable segments	$	31,326,727		$	33,109,106
Segment income (loss):
Network solutions	$	2,485,585		$	3,290,220
Test and measurement		(248,468	)		729,090
Income from reportable segments		2,237,117			4,019,310
Other unallocated amounts:
Corporate expenses		(4,785,226	)		(3,272,271	)
Other income - net		363,851			(24,418	)
Consolidated income (loss) from operations before income taxes	$	(2,184,258	)	$	722,621
Depreciation and amortization by segment:
Network solutions	$	254,590		$	225,194
Test and measurement		248,470			233,439
Total depreciation and amortization for reportable segments	$	503,060		$	458,633
Capital expenditures by segment (a):
Network solutions	$	463,626		$	371,718
Test and measurement		354,962			91,710
Total consolidated capital expenditures by reportable segment	$	818,588		$	463,428
Total assets by segment:
Network solutions	$	10,594,770		$	10,638,961
Test and measurement		7,851,479			7,153,310
Total assets for reportable segments		18,446,249			17,792,271
Corporate assets, principally cash and cash equivalents and deferred income taxes		16,988,886			16,914,053
Total consolidated assets	$	35,435,135		$	34,706,324

(a) Net of equipment lease payable of $41,904 for 2016 (network solutions segment) and $48,804 for 2015 (test and measurement segment).

In addition to its in-house sales staff, the Company uses manufacturers’ representatives to sell its products. For the year ended December 31, 2016, two representatives each accounted for approximately 12% and 11% of total consolidated revenues. No other single manufacturers’ representative accounted for 10% or more of total consolidated revenues in 2016. For the year ended December 31, 2015, no representative accounted for more than 10% of total consolidated revenues.

Regional Revenues:

Net consolidated revenues from operations by region were as follows:

	For the Years
	Ended December 31,
	2016		2015
Americas	$	24,155,154	$	24,946,340
Europe, Middle East, Africa (EMEA)		5,497,826		5,885,975
Asia Pacific (APAC)		1,673,747		2,276,791
	$	31,326,727	$	33,109,106

Net revenues are attributable to a geographic area based on the destination of the product shipment, which may not be the final geographic destination of our international distributors’ end customer. The majority of shipments in the Americas are to customers located within the United States. For the years ended December 31, 2016 and 2015, sales in the United States amounted to $23,269,462 and $23,040,410, respectively. Shipments to the remaining regions presented above were largely concentrated in Israel and Germany (EMEA) and China (APAC). For the years ended December 31, 2016 and 2015, sales to Israel amounted to $1,178,295, or 21%, and $1,667,854, or 28%, of all shipments to the EMEA region, respectively. For the years ended December 31, 2016 and 2015, sales to Germany amounted to $715,518, or 13%, and $1,068,093, or 18%, of all shipments to the EMEA region, respectively. Sales to China, for the years ended December 31, 2016 and 2015, amounted to $1,104,217, or 66%, and $1,453,736, or 64%, of all shipments to the APAC region, respectively. There were no other shipments significantly concentrated in one country.