Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
 6 Months Ended
Apr. 30, 2011
Segment Reporting [Abstract]  
Segment Information

NOTE 14 - SEGMENT INFORMATION

 

The Company’s two reportable segments are managed separately based on fundamental differences in their operations. Coda Octopus Colmek and Coda Octopus Martech make up the contracting part of the business, and Coda Octopus Products Limited and Coda Octopus Products Inc. make up the product sales.

 

As a result of the Company’s internal reorganization the Company has restated previously reported segment information.

 

The contracting segment deals mainly with Government agencies and defense prime contractors and have expertise in designing and producing specific devices and components for such customers, with an emphasis on sub-sea technology. This segment also manufactures the Group’s products (for Coda Octopus Products).

 

The products segment designs and produces, through its arrangements with the contracting segment, sub-sea software and hardware products aimed at the Oil and Gas, Underwater Construction, and Port and Harbor Security markets.

 

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 segment asset and operating balances by reportable segment.

 

    Three months ended     Six months ended  
    April 30, 2011     April 30, 2010     April 30, 2011     April 30, 2010  
Net Sales to External Customers:                                
Contracting   $ 1,209,874     $ 1,577,392     $ 2,682,523     $ 3,026,557  
Products     1,982,374       2,136,193       4,098,283       3,755,238  
                                 
Total Sales to External Customers   $ 3,192,248     $ 3,713,585     $ 6,780,806     $ 6,781,795  
                                 
Depreciation and Amortization:                                
Contracting   $ 18,239     $ 79,905     $ 39,759     $ 120,288  
Products     29,849       1,473       44,603       11,053  
Corporate     6,162       71,234       11,857       144,647  
Total Depreciation and Amortization   $ 54,250     $ 152,612     $ 96,219     $ 275,988  
                                 
General and Administrative Expense:                                
Contracting   $ 467,711     $ 704,207     $ 913,142     $ 1,439,262  
Products     490,055       714,378       985,595       1,159,809  
Corporate     (32,389 )     369,821       806,790       764,229  
Total General and Administrative Expense   $ 925,377     $ 1,788,406     $ 2,705,527     $ 3,363,300  
                                 
Capital Expenditures:                                
Contracting   $ -     $ -     $ -     $ -  
Products     -       -       2,260       -  
Corporate     -       -       -       7,690  
Total Capital Expenditures   $ -     $ -     $ 2,260     $ 7,690  
                                 
Operating Income (Losses):                                
Contracting   $ (45,111 )   $ (442,641 )   $ 256,440     $ (1,216,105 )
Products     745,273       891,474       913,045       1,737,780  
Corporate     (410,891 )     (401,711 )     (1,240,070 )     (764,229 )
Total Segment Operating Income (Losses)   $ 289,271     $ 47,122     $ (70,586 )   $ (242,554 )

 

As of    
    April 30, 2011     October 31, 2010  
Segment Assets:                
Contracting   $ 5,577,431     $ 5,866,581  
Products     3,511,852       2,428,610  
Corporate     155,412       1,428,097  
Total Segment Assets   $ 9,244,695     $ 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 April 30, 2011 and 2010:

 

    Three months ended  
    April 30, 2011     April 30, 2010  
NET SALES TO EXTERNAL CUSTOMERS:                
United States   $ 1,056,292     $ 2,344,817  
Europe     2,135,956       1,368,768  
TOTAL NET SALES TO EXTERNAL CUSTOMERS   $ 3,192,248     $ 3,713,585  
                 

 

    Six months ended  
    April 30, 2011     April 30, 2010  
NET SALES TO EXTERNAL CUSTOMERS:                
United States   $ 2,434,802     $ 3,325,751  
Europe     4,346,004       3,456,044  
TOTAL NET SALES TO EXTERNAL CUSTOMERS   $ 6,780,806     $ 6,781,795  

 

    As of  
    April 30, 2010     October 31, 2010  
ASSETS:                
United States   $ 4,003,652     $ 4,716,984  
Europe     5,241,043       5,006,304  
TOTAL ASSETS   $ 9,244,695     $ 9,723,288