Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note H: Segment Information

We disclose segment information in accordance with Financial Accounting Standards Board ("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 September 30, 2011 and 2010 (in thousands):

	Autoscope					RTMS				CitySync				Total
		2011		2010		2011		2010		2011		2010		2011		2010
Revenue	$	4,480	$	4,784	$	1,678	$	2,487	$	1,264	$	1,850	$	7,422	$	9,121
Gross profit		4,081		4,056		931		1,630		635		1,280		5,647		6,966
Goodwill impairment		525		--		7,392		--		3,768		--		11,685		--
Amortization of intangible assets		--		--		192		192		225		219		417		411
Intangible assets and goodwill		--		525		3,743		10,237		7,755		11,774		11,498		22,536

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

	Autoscope					RTMS				CitySync				Total
		2011		2010		2011		2010		2011		2010		2011		2010
Revenue	$	11,243	$	11,990	$	5,751	$	6,959	$	4,675	$	2,159	$	21,669	$	21,108
Gross profit		10,404		10,711		3,263		4,365		2,404		1,435		16,071		16,511
Goodwill impairment		525		--		7,392		--		3,768		--		11,685		--
Amortization of intangible assets		--		--		576		576		667		243		1,243		819
Intangible assets and goodwill		--		525		3,743		10,237		7,755		11,774		11,498		22,536