Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

Note G: Segment Information

We disclose segment information in accordance with FASB Accounting Standards Codification (ASC) 280, Segment Reporting, which defines an operating segment as a component of a company for which operating results are reviewed regularly by the chief operating decision-makers to determine resource allocation and assess performance. We have three reportable segments: Autoscope, RTMS and CitySync. Autoscope is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite Control Products, Inc.), as well as a portion of products sales. RTMS is our radar product line acquired in the EIS asset purchase in 2007 and CitySync is our Automatic Number Plate Recognition (ANPR) System product line acquired in the CitySync purchase in June 2010. All segment revenues are derived from external customers.

Our presentation of segments in fiscal 2011 has changed from our previous filings as company-wide organizational changes completed in early 2011 focus the chief operating decision-makers on segment gross profit. The segment information below has been reclassified to reflect these changes. Operating expenses and total assets are not allocated to the segments for internal reporting purposes.

The following table sets forth selected unaudited financial information for each of the Company's reportable segments for the three-month periods ended June 30, 2011 and 2010 (in thousands):

	Autoscope					RTMS				CitySync				Total
		2011		2010		2011		2010		2011		2010		2011		2010
Revenue	$	3,699	$	4,197	$	3,112	$	2,078	$	1,291	$	309	$	8,102	$	6,584
Gross profit		3,418		3,847		1,891		1,072		634		155		5,943		5,074
Amortization of intangible assets		--		--		192		192		222		24		414		216
Intangible assets and goodwill		525		525		11,326		10,429		11,975		10,024		23,826		20,978

The following table sets forth selected unaudited financial information for each of the Company's reportable segments for the six-month periods ended June 30, 2011 and 2010 (in thousands):

	Autoscope					RTMS				CitySync				Total
		2011		2010		2011		2010		2011		2010		2011		2010
Revenue	$	6,763	$	7,206	$	4,073	$	4,472	$	3,411	$	309	$	14,247	$	11,987
Gross profit		6,323		6,655		2,332		2,735		1,769		155		10,424		9,545
Amortization of intangible assets		--		--		384		384		442		24		826		408
Intangible assets and goodwill		525		525		11,326		10,429		11,975		10,024		23,826		20,978