Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
3 Months Ended
Jan. 31, 2011
Segment Reporting [Abstract]  
Segment Information

NOTE 14 - SEGMENT INFORMATION

 

Due to the nature of our businesses, we are operating in two reportable segments, which are managed separately based upon fundamental differences in their operations. Martech, Dragon, Colmek, Tactical and Innalogic operate as contractors, and the balance of our operations is comprised of product sales.

 

Segment operating income is total segment revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative costs.

 

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies.

 

There are inter-segment sales between our engineering contracting businesses and our products businesses, which have been removed from the information shown below.

 

The following table summarizes asset and operating balances by reportable segment.

 

    Three months ended  
    January 31, 2011     January 31, 2010  
Net Sales to External Customers:                
Contracting   $ 1,472,649     $ 1,449,165  
Products     2,115,909       1,619,045  
                 
Total Sales to External Customers   $ 3,588,558     $ 3,068,210  
                 
Depreciation and Amortization:                
Contracting   $ 21,520     $ 40,383  
Products     14,754       9,580  
Corporate     5,695       73,413  
Total Depreciation and Amortization   $ 41,969     $ 123,376  
                 
General and Administrative Expense:                
Contracting   $ 445,431     $ 735,055  
Products     495,540       445,431  
Corporate     839,179       394,408  
Total General and Administrative Expense   $ 1,780,150     $ 1,574,894  
                 
Capital Expenditures:                
Contracting   $ 5,731     $ -  
Products     126,627       7,690  
Corporate     -       -  
Total Capital Expenditures   $ 132,358     $ 7,690  
                 
Operating Income (Losses):                
Contracting   $ 301,551     $ (773,464 )
Products     167,772       846,306  
Corporate     (829,179 )     (362,517 )
Total Segment Operating Losses   $ (359,856 )   $ (289,676 )

 

    As of  
    January 31, 2011     October 31, 2010  
Segment Assets:                
Contracting   $ 5,689,171     $ 5,866,581  
Products     3,448,688       2,428,610  
Corporate     1,480,562       1,428,097  
Total Segment Assets   $ 10,618,421     $ 9,723,288  

 

The Company’s reportable business segments operate in two geographic locations.

 

Those geographic locations are:

 

* United States

 

* Europe

 

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies. There are inter-segment sales which have been removed upon consolidation and for the purposes of the information shown below.

 

Information concerning principal geographic areas is presented below according to the area where the activity is taking place for the period ended January 31, 2011 and 2010:

 

    Three months ended  
    January 31, 2011     January 31, 2010  
NET SALES TO EXTERNAL CUSTOMERS:                
United States   $ 1,378,510     $ 980,934  
Europe     2,210,048       2,087,276  
TOTAL SALES TO EXTERNAL CUSTOMERS   $ 3,588,558     $ 3,068,210  

 

    As of  
    January 31, 2011     October 31, 2010  
ASSETS:                
United States   $ 4,891,277     $ 4,716,984  
Europe     5,727,144       5,006,304  
TOTAL ASSETS   $ 10,618,421     $ 9,723,288