Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Note K: Segment Information

The Company's Interim Chief Executive Officer and management regularly review financial information for the Company's 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 two reportable segments:  Intersection and Highway.  

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. RTMS is our radar product line and revenue consists of international and North American product sales. Radar products are normally sold in the Highway segment. Until July 9, 2015, Autoscope license plate recognition was our LPR product line and was the Company's third operating segment.  All segment revenues are derived from external customers. 

 

As described in Note B to these Notes to the Condensed Consolidated Financial Statements, effective on July 9, 2015, we sold our LPR business.  Therefore, effective on that date, the LPR business qualified for discontinued operations presentation in the Company's condensed consolidated financial statements, and the results of the discontinued LPR business have been presented as discontinued operations effective with the reporting of financial results for the three months ended September 30, 2015.  Financial results for the three and six months ended June 30, 2016 have been reported on this basis, and previously reported results for the three and six months ended June 30, 2015 have also been restated to reflect this classification.  Therefore, the following tables do not include financial results for the Company's LPR business segment.

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 Months Ended June 30,
	Intersection				Highway				Total
	2016		2015		2016		2015		2016		2015
Revenue	$	2,697	$	3,189	$	1,980	$	1,218	$	4,677	$	4,407
Gross profit		2,534		2,750		1,179		801		3,713		3,551
Amortization of intangible assets		-		-		-		123		-		123
Intangible assets		2,335		-		-		210		2,335		210
	Six Months Ended June 30,
	Intersection				Highway				Total
	2016		2015		2016		2015		2016		2015
Revenue	$	4,601	$	5,350	$	3,314	$	2,284	$	7,915	$	7,634
Gross profit		4,252		4,828		1,781		1,363		6,033		6,191
Amortization of intangible assets		-		-		-		245		-		245
Intangible assets		2,335		-		-		210		2,335		210