Note 17 - Business Segments

3 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

17.

Business Segments

The Company reports its financial results in

two

reportable business segments: Grid and Wind.

Through the Company’s power grid offerings, the Grid business segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute power through our transmission planning services, power electronics, and superconductor-based systems. The sales process is enabled by transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which helps the Company determine how its solutions can improve network performance. These services often lead to sales of grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.  The Company also sells ship protection products to the U.S. Navy through its Grid business segment.

Through the Company’s wind power offerings, the Wind business segment enables manufacturers to field highly competitive wind turbines through our advanced power electronics and control system products, engineered designs, and support services. The Company supplies advanced power electronics and control systems, licenses its highly engineered wind turbine designs, and provides extensive customer support services to wind turbine manufacturers. The Company’s design portfolio includes a broad range of drive trains and power ratings of

2

megawatts ("MWs") and higher. The Company provides a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility.

The operating results for the

two

business segments are as follows (in thousands):

	Three Months Ended June 30,
	2019		2018
Revenues:
Grid	$	9,855	$	8,929
Wind		3,915		3,678
Total	$	13,770	$	12,607

	Three Months Ended June 30,
	2019			2018
Operating loss:
Grid	$	(4,663	)	$	(2,666	)
Wind		(1,324	)		(1,367	)
Unallocated corporate expenses		(249	)		(1,095	)
Total	$	(6,236	)	$	(5,128	)

The accounting policies of the business segments are the same as those for the consolidated Company. The Company’s business segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measures are segment revenues and segment operating loss. The disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain corporate expenses which the Company does

not

believe are specifically attributable or allocable to either of the

two

business segments have been excluded from the segment operating loss.

Unallocated corporate expenses primarily consist of stock-based compensation expense of $

0.2

million and

$0.8

million in the 

three

months ended 

June 30, 2019

and

2018

, respectively, and restructuring charges of

$0.3

million in the

three

months ended

June 30, 2018

.

Total assets for the

two

business segments as of 

June 30, 2019

and 

March 31, 2019

are as follows (in thousands):

	June 30, 2019		March 31, 2019
Grid	$	32,169	$	31,075
Wind		11,416		8,167
Corporate assets		76,565		80,088
Total	$	120,150	$	119,330