Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting and Foreign Operations

v2.4.0.8
Segment Reporting and Foreign Operations
3 Months Ended
Mar. 31, 2014
Segment Reporting and Foreign Operations [Abstract]  
Segment Reporting and Foreign Operations
Note 17 – Segment Reporting and Foreign Operations
 
The Company operates in the following business segments:
 
·
IT Commercial: These services include enterprise computing and storage, virtualization, business continuity, networking and information technology business consulting services to commercial organizations.
·
IT Government: Information technology and telecommunications solutions and services primarily to government agencies in the United States, (Domestic) and Saudi Arabia (Foreign). The operations include systems integration and consulting, including, but not limited to: custom application/software design, architecture and development, data center design and operations services, command control, computer communication, intelligence (C4I) system consulting, program management and security solutions and services.
·
eSolutions: Internet based hosting eServices to its customers located in Europe (Foreign), Canada (Foreign) and the United States (Domestic) by providing Cloud-based data analytics and enterprise solutions to the media, publishing, and entertainment industries.
 
    IT Commercial     IT Government:     eSolutions    
Unallocated/
Corporate/Other
   
Total
 
Three months ended March 31, 2014
                             
Revenues from external customers
  $ 13,965,000     $ 1,382,000     $ 973,000     $ --     $ 16,320,000  
Cost of revenues
  $ (10,951,000 )   $ (816,000 )   $ (202,000 )   $ --     $ (11,969,000 )
Gross margin
  $ 3,013,000     $ 566,000     $ 771,000     $ --     $ 4,350,000  
Depreciation and amortization
  $ 21,000     $ 7,000     $ 11,000     $ --     $ 39,000  
Amortization of Intangibles
  $ 192,000     $ --     $ 136,000     $ --     $ 328,000  
Segment profit (loss)
  $ (99,000 )   $ 84,000     $ 223,000     $ (1,032,000 )   $ (824,000 )
                                         
Three months ended March 31, 2013
                                       
Revenues from external customers
  $ 4,276,000     $ 1,086,000     $ --     $ --     $ 5,362,000  
Cost of revenues
  $ (3,313,000 )   $ (593,000 )   $ --     $ --     $ (3,906,000 )
Gross margin
  $ 963,000     $ 493,000     $ --     $ --     $ 1,456,000  
Depreciation
  $ 8,000     $ 10,000     $ --     $ --     $ 18,000  
Amortization of Intangibles
  $ 63,000     $ --     $ --     $ --     $ 63,000  
Segment profit (loss)
  $ (19,000 )   $ 128,000     $ --     $ (1,604,000 )   $ (1,495,000 )
                                         
As of March 31, 2014
                                       
Total property and equipment
  $ 223,000     $ 9,000     $ 31,000     $ 2,000     $ 265,000  
Property and equipment additions
  $ 9,000     $ 1,000     $ --     $ --     $ 10,000  
Intangible assets and goodwill
  $ 9,091,000     $ --     $ 3,676,000     $ --     $ 12,767,000  
Intangible assets and goodwill additions
  $ --     $ --     $ 59,000     $ --     $ 59,000  
Total segment assets
  $ 31,906,000     $ 3,765,000     $ 9,150,000     $ (3,141,000 )   $ 41,680,000  
 
The Company’s operations are located primarily in the United States and Saudi Arabia. Revenues by geographic area are attributed by country of domicile of our subsidiaries. The financial data by geographic area are as follows:
 
   
United
   
Saudi
             
   
States
   
Arabia
   
Eliminations
   
Total
 
Three Months Ended March 31, 2014:
                       
Revenues by geographic area                                                        
  $ 16,320,000     $ --     $ --     $ 16,320,000  
Operating loss by geographic area                                                        
  $ (609,000 )   $ (86,000 )   $ --     $ (695,000 )
Net loss by geographic area                                                        
  $ (738,000 )   $ (86,000 )   $ --     $ (824,000 )
                                 
Three Months Ended March 31, 2013:
                               
Revenues by geographic area                                                        
  $ 5,317,000     $ 45,000     $ --     $ 5,362,000  
Operating loss by geographic area                                                        
  $ (888,000 )   $ (74,000 )   $ --     $ (962,000 )
Net loss by geographic area                                                        
  $ (1,421,000 )   $ (74,000 )   $ --     $ (1,495,000 )
                                 
As of March 31, 2014:
                               
Identifiable assets by geographic area
  $ 40,904,000     $ 776,000     $ --     $ 41,680,000  
Long lived assets by geographic area
  $ 13,152,000     $ 4,000     $ --     $ 13,156,000