PRO DEX INC Segments Disclosure

15.	Segment Information

 

In fiscal 2016, the Company has four reportable segments based on its business activities and organization:

 

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Pro-Dex located in Irvine, California – providing primarily medical and dental instruments using shared production and assembly machines and workforce. This segment also incorporates Huber Precision as the revenues and assets of Huber Precision are not material to the Company’s total revenues and assets. Additionally, effective November 30, 2015 the former San Carlos office of Huber Precision was closed and all orders shipped since that date are manufactured at the Irvine facility.

 

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OMS located in Beaverton, Oregon – providing multi-axis motion control applications.

 

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Fineline located in San Dimas, California.  This business was purchased on February 1, 2015 and is a manufacturer of plastic injection molds for a variety of industries.

 

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Engineering Services Division or (“ESD”).  This division was launched in fiscal 2015 to provide permanent placement and contract services in the fields of engineering, manufacturing and quality to diverse businesses.

 

In deciding how to allocate resources and assess performance, the Company’s chief executive officer regularly evaluates the sales and operating income of these segments. Operating income is the gross margin of the segment less direct expenses of the segment. Unallocated corporate expenses include our corporate administrative cost center, which primarily includes costs associated with being a public company, as well as general and administrative expenses incurred related to our investment in the Ramsey property and related notes receivable and is a subset of total general and administrative expenses. Additionally, other costs incurred in our general and administrative expenses (“G&A”) including salaries and other personnel-related expenses for corporate, accounting, finance and human resource personnel, as well as costs for outsourced information technology services, are not allocated by segment internally and are included in Pro-Dex in the tables below. The following tables summarize segment performance for fiscal 2016 and 2015 (in thousands): 

 

		Pro-Dex				OMS				Fineline(1)				ESD				Corporate Unallocated				Total
Fiscal 2016
Net Sales		$	17,158			$	969			$	1,301			$	730			$	—			$	20,158
Gross Profit			4,632				484				32				255				—				5,403
Operating Income (loss)			1,985				(282	)			(415	)			(70	)			(692	)			526
Depreciation and amortization expense			536				11				67				—				—				614
Total assets			7,414				371				660				186				2,516				11,147

 

(1)

The Fineline operating loss includes $245,000 related to impairment of goodwill and long-lived assets.

 

		Pro-Dex				OMS				Fineline				ESD				Corporate Unallocated				Total
Fiscal 2015
Net Sales		$	11,617			$	1,394			$	257			$	115			$	—			$	13,383
Gross Profit			2,653				927				44				80				—				3,704
Operating Income (loss)			75				144				(33	)			(361	)			(727	)			(902	)
Depreciation and amortization expense			536				11				31				—				—				578
Total assets			8,479				548				962				17				2,510				12,516

 

Revenue by geographic region, based upon the ship to address, consisted of the following (in thousands):

 

		Years ended June 30,
		2016				2015
Revenue by geographic region:
North America		$	16,093			$	6,367
Europe			3,840				6,972
Other			225				44
Total Revenue		$	20,158			$	13,383