Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Note J: Segment Information

The Company’s Chief Executive Officer and management regularly review financial information for the Company’s three discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into three reportable segments: Intersection, Highway and License Plate Recognition (“LPR”). Autoscope® video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. The Autoscope® radar is our radar product line, and revenue consists of international and North American product sales as well as a portion of royalties (all of which are received from Econolite). Radar products are normally sold in the Highway segment. Autoscope® license plate recognition is our LPR product line. All segment revenues are derived from external customers.

Operating expenses and total assets are not allocated to the segments for internal reporting purposes. Due to the changes in how we manage our business, we may reevaluate our segment definitions in the future.

The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands):

	Three-Month Periods Ended September 30,
	Intersection				Highway				LPR				Total
	2014		2013		2014		2013		2014		2013		2014		2013
Revenue	$	3,194	$	3,586	$	3,059	$	2,794	$	887	$	1,361	$	7,140	$	7,741
Gross profit		2,883		3,058		1,443		1,238		257		501		4,583		4,797
Amortization of intangible assets		—		—		122		122		268		206		390		328
Intangible assets		—		—		576		1,778		4,746		4,409		5,322		6,187

	Nine-Month Periods Ended September 30,
	Intersection					Highway						LPR						Total
	2014		2013			2014			2013			2014			2013			2014			2013
Revenue	$	9,001		$	10,293		$	5,229		$	4,409		$	3,170		$	5,122		$	17,400		$	19,824
Gross profit		8,230			8,963			2,609			1,669			1,124			2,681			11,963			13,313
Amortization of intangible assets		—			—			366			367			806			642			1,172			1,009
Intangible assets		—			—			576			1,778			4,746			4,409			5,322			6,187