Note 3. Segment Information

12 Months Ended

Mar. 31, 2012

Segment Reporting Disclosure [Text Block]

Note 3. Segment Information

We design, develop, manufacture, and market products for endoscopy in two reportable segments, medical and industrial.

Management evaluates the revenue and profitability performance of each of our segments to make operating and strategic decisions. We have no intersegment revenue.

Fiscal Year Ended March 31,	Medical			Industrial			Adjustments*			Consolidated
2012
Net sales	$	13,735		$	2,951		$	-		$	16,686
Gross profit		4,064			1,021			-			5,085
Operating loss		(9,868	)		(247	)		-			(10,115	)
Depreciation and amortization		789			43			-			832
Assets		13,140			1,413			(1,954	)		12,599
Expenditures for fixed assets		209			-			-			209
2011
Net sales	$	8,371		$	2,528		$	-		$	10,899
Gross profit		2,149			771			-			2,920
Operating loss		(11,347	)		(15	)		-			(11,362	)
Depreciation and amortization		716			31			-			747
Assets		20,142			1,634			(2,010	)		19,766
Expenditures for fixed assets		269			-			-			269
	March 31,
*Adjustments		2012			2011
Intercompany eliminations	$	(1,268	)	$	(1,324	)
Investment in subsidiaries		(686	)		(686	)
Total adjustments	$	(1,954	)	$	(2,010	)

The following table presents the reconciliation of loss before provision for income taxes:

	Fiscal Year Ended March 31,
	2012			2011
Operating loss	$	(10,115	)	$	(11,362	)
Interest expense, net		(480	)		(325	)
Debt cost expense		(372	)		(141	)
Other, net		(48	)		(6	)
Loss before provision for income taxes	$	(11,015	)	$	(11,834	)

The following table presents net sales based on the geographic location of the external customer. No individual foreign country accounted for more than 10% of our worldwide sales in fiscal years 2012 and 2011.

	Fiscal Year Ended March 31,
	2012				2011
United States	$	11,349	68	%	$	7,277	81	%
Europe		3,700	22	%		2,797	12	%
Asia and Australia		885	5	%		383	3	%
Middle East and Africa		371	2	%		327	2	%
Canada		303	2	%		77	2	%
Central and South America		78	1	%		38	0	%
Net sales	$	16,686	100	%	$	10,899	100	%