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Segment Information
 6 Months Ended
Jan. 31, 2014
Segment Reporting [Abstract]  
Segment Information
(15)    Segment Information

Reportable operating segments are determined based on Comtech’s management approach. The management approach, as defined by FASB ASC 280, “Segment Reporting,” is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our chief operating decision-maker is our President and Chief Executive Officer.

While our results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker also manages the enterprise in three operating segments: (i) telecommunications transmission, (ii) RF microwave amplifiers, and (iii) mobile data communications.

Telecommunications transmission products include satellite earth station products (such as analog and digital modems, frequency converters, power amplifiers, transceivers and voice gateways) and over-the-horizon microwave communications products and systems (such as digital troposcatter modems).

RF microwave amplifier products include traveling wave tube amplifiers and solid-state, high-power narrow and broadband amplifier products that use the microwave and radio frequency spectrums.

Mobile data communications products and services substantially relate to our support of the U.S. Army's Blue Force Tracking (“BFT-1”) and the U.S. Army's Movement Tracking System (“MTS”) programs, which are currently in a sustainment mode. Pursuant to a two-year $44,279,000 indefinite delivery/indefinite quantity BFT-1 sustainment contract, which performance period ends on March 31, 2014, we license certain of our intellectual property to the U.S. Army and provide satellite network and related engineering services (including program management) on a cost-plus-fixed-fee basis.

Corporate management defines and reviews segment profitability based on the same allocation methodology as presented in the segment data tables below:
 
 
Three months ended January 31, 2014
 
 
Telecommunications
Transmission
 
RF Microwave
Amplifiers
 
Mobile Data
Communications
 
Unallocated
 
Total
Net sales
 
$
56,521,000

 
22,041,000

 
6,937,000

 
—

 
$
85,499,000

Operating income (loss)
 
10,268,000

 
1,077,000

 
3,273,000

 
(3,446,000
)
 
11,172,000

Interest income and other (expense)
 
(18,000
)
 
(13,000
)
 
3,000

 
256,000

 
228,000

Interest expense (income)
 
61,000

 
—

 
(3,000
)
 
1,940,000

 
1,998,000

Depreciation and amortization
 
2,231,000

 
945,000

 
63,000

 
1,085,000

 
4,324,000

Expenditure for long-lived assets, including intangibles
 
1,981,000

 
163,000

 
246,000

 
7,000

 
2,397,000

Total assets at January 31, 2014
 
244,478,000

 
90,733,000

 
7,114,000

 
312,889,000

 
655,214,000


 
 
Three months ended January 31, 2013
 
 
Telecommunications
Transmission
 
RF Microwave
Amplifiers
 
Mobile Data
Communications
 
Unallocated
 
Total
Net sales
 
$
45,769,000

 
20,362,000

 
8,446,000

 
—

 
$
74,577,000

Operating income (loss)
 
5,549,000

 
645,000

 
2,994,000

 
(3,241,000
)
 
5,947,000

Interest income and other (expense)
 
(26,000
)
 
(7,000
)
 
3,000

 
345,000

 
315,000

Interest expense (income)
 
80,000

 
—

 
(6,000
)
 
1,956,000

 
2,030,000

Depreciation and amortization
 
2,427,000

 
977,000

 
134,000

 
844,000

 
4,382,000

Expenditure for long-lived assets, including intangibles
 
1,228,000

 
135,000

 
26,000

 
5,000

 
1,394,000

Total assets at January 31, 2013
 
226,656,000

 
93,208,000

 
10,651,000

 
354,232,000

 
684,747,000


 
 
Six months ended January 31, 2014
 
 
Telecommunications
Transmission
 
RF Microwave
Amplifiers
 
Mobile Data
Communications
 
Unallocated
 
Total
Net sales
 
$
110,886,000

 
42,238,000

 
15,743,000

 
—

 
$
168,867,000

Operating income (loss)
 
19,197,000

 
1,668,000

 
7,379,000

 
(6,973,000
)
 
21,271,000

Interest income and other (expense)
 
(12,000
)
 
(18,000
)
 
6,000

 
525,000

 
501,000

Interest expense (income)
 
120,000

 
—

 
(3,000
)
 
3,899,000

 
4,016,000

Depreciation and amortization
 
4,490,000

 
1,888,000

 
137,000

 
2,048,000

 
8,563,000

Expenditure for long-lived assets, including intangibles
 
2,914,000

 
257,000

 
246,000

 
7,000

 
3,424,000

Total assets at January 31, 2014
 
244,478,000

 
90,733,000

 
7,114,000

 
312,889,000

 
655,214,000


 
 
Six months ended January 31, 2013
 
 
Telecommunications
Transmission
 
RF Microwave
Amplifiers
 
Mobile Data
Communications
 
Unallocated
 
Total
Net sales
 
$
99,096,000

 
45,651,000

 
20,783,000

 
—

 
$
165,530,000

Operating income (loss)
 
17,808,000

 
2,363,000

 
6,465,000

 
(7,327,000
)
 
19,309,000

Interest income and other (expense)
 
(35,000
)
 
(29,000
)
 
12,000

 
643,000

 
591,000

Interest expense (income)
 
239,000

 
—

 
(6,000
)
 
3,908,000

 
4,141,000

Depreciation and amortization
 
4,863,000

 
1,957,000

 
286,000

 
1,628,000

 
8,734,000

Expenditure for long-lived assets, including intangibles
 
2,069,000

 
342,000

 
41,000

 
5,000

 
2,457,000

Total assets at January 31, 2013
 
226,656,000

 
93,208,000

 
10,651,000

 
354,232,000

 
684,747,000



Operating income in our telecommunications transmission segment for the six months ended January 31, 2014 includes a benefit of $239,000 related to a change in fair value of the earn-out liability associated with our acquisition of Stampede. There was no such benefit during the three months ended January 31, 2014. Operating income in our telecommunications transmission segment for the three and six months ended January 31, 2013 includes a benefit of $889,000 and $3,267,000, respectively, related to a change in fair value of the earn-out liability associated with our acquisition of Stampede. See Note (8) - "Accrued Expenses and Other Current Liabilities."

Operating income in our mobile data communications segment for the three months ended January 31, 2013 includes a benefit of $253,000 relating to an adjustment for actual pre-tax restructuring charges that were lower than expected and, for the six months ended January 31, 2013, includes a net pre-tax restructuring charge of $569,000 related to the wind-down of our microsatellite product line. See Note (9) - "Cost Reduction Actions."

Unallocated expenses include corporate expenses such as executive compensation, accounting, legal and other regulatory compliance related costs. In addition, for the three and six months ended January 31, 2014 and 2013, unallocated expenses include $1,069,000 and $2,016,000, respectively, and $806,000 and $1,551,000, respectively, of stock-based compensation expense. Interest expense (which includes amortization of deferred financing costs) associated with our convertible senior notes and our Credit Facility is not allocated to the operating segments. Depreciation and amortization includes amortization of stock-based compensation. Unallocated assets consist principally of cash, deferred financing costs and deferred tax assets. Substantially all of our long-lived assets are located in the U.S.

Intersegment sales for the three months ended January 31, 2014 and 2013 by the telecommunications transmission segment to the RF microwave amplifiers segment were $464,000 and $423,000, respectively. Intersegment sales for the six months ended January 31, 2014 and 2013 by the telecommunications transmission segment to the RF microwave amplifiers segment were $765,000 and $1,657,000, respectively.

Intersegment sales for the three months ended January 31, 2014 and 2013 by the telecommunications transmission segment to the mobile data communications segment were $134,000 and $112,000, respectively. Intersegment sales for the six months ended January 31, 2014 and 2013 by the telecommunications transmission segment to the mobile data communications segment were $172,000 and $2,619,000, respectively.

Intersegment sales for the three months ended January 31, 2014 and 2013 by the RF microwave amplifiers segment to the telecommunications transmission segment were $68,000 and $3,000, respectively. Intersegment sales for the six months ended January 31, 2014 and 2013 by the RF microwave amplifiers segment to the telecommunications transmission segment were $134,000 and $6,000, respectively.

All intersegment sales have been eliminated from the tables above.