XML 23 R13.htm IDEA: XBRL DOCUMENT v3.20.2
SEGMENT INFORMATION
 3 Months Ended
Jul. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE G – SEGMENT INFORMATION


The Company operates under two reportable segments based on the geographic locations of its subsidiaries:


 

(1)

FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets: satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.

 

The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business.

 

(2)

FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications. FEI-Zyfer’s products also incorporate precision time references for terrestrial secure communications and command and control, and frequency products that incorporate GPS.  FEI-Zyfer’s GPS capability complements the Company’s existing technologies and permits the combined entities to provide a broader range of embedded systems for a variety of timing functions and anti-spoofing (“SAASM”) applications.

The Company measures segment performance based on total revenues and profits generated by each geographic location rather than on the specific types of customers or end-users.  Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s management views the business.


The accounting policies of the two segments are the same as those described in the “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended April 30, 2020, filed on July 29, 2020 with the Securities and Exchange Commission. The Company evaluates the performance of its segments and allocates resources to them based on operating profit which is defined as income before investment income, interest expense and taxes.  All acquired assets, including intangible assets, are included in the assets of both reporting segments.


The tables below present information about reported segments with reconciliation of segment amounts to consolidated amounts as reported in the condensed consolidated statements of operations or the condensed consolidated balance sheets for each of the periods (in thousands):


   

Three months ended July 31,

  
   

2020

    

2019

  

Revenues:

                

FEI-NY

   $ 9,839     $ 9,010  

FEI-Zyfer

     3,922       3,701  

less intersegment revenues

     (810

)

     (157

)

Consolidated revenues

   $ 12,951     $ 12,554  

Operating (loss) profit:

                

FEI-NY

   $ (623

)

   $ (1,232

)

FEI-Zyfer

     361       517  

Corporate

     (75

)

     (65

)

Consolidated operating loss

   $ (337

)

   $ (780

)

   

July 31, 2020

    

April 30, 2020

  

Identifiable assets:

                

FEI-NY

   $ 42,732     $ 44,599  

FEI-Zyfer

     14,786       13,344  

less intersegment balances

     -       (8,586

)

Corporate

     31,426       41,919  

Consolidated identifiable assets

   $ 88,944     $ 91,276  

Total revenue recognized over time as POC and Passage of Title (“POT”) were approximately $11.7 million and $1.3 million, respectively, of the $13.0 million reported for the three months ended July 31, 2020. The amounts recognized over time as POC and POT were approximately $11.5 million and $1.1 million of the $12.6 million reported for the three months ended July 31, 2019. The amounts by segment and product line were as follows:


 

 

Three Months Ended July 31, 2020

 

 

Three Months Ended July 31, 2019

 

 

 

(In thousands)

 

 

(In thousands)

 

 

 

POC Revenue

 

 

POT Revenue

 

 

Total Revenue

 

 

POC Revenue

 

 

POT Revenue

 

 

Total Revenue

 

FEI-NY

 

$

8,622

 

 

$

1,217

 

 

$

9,839

 

 

$

8,160

 

 

$

850

 

 

$

9,010

 

FEI-Zyfer

 

 

3,038

 

 

 

884

 

 

 

3,922

 

 

 

3,323

 

 

 

378

 

 

 

3,701

 

Intersegment

 

 

(9)

 

 

 

(801

)

 

 

(810

)

 

 

26

 

 

 

(183

)

 

 

(157

)

Revenue

 

$

11,651

 

 

$

1,300

 

 

$

12,951

 

 

$

11,509

 

 

$

1,045

 

 

$

12,554

 

   

Three Months Ended July 31,

  
   

2020

    

2019

  
   

(In thousands)

  

Revenue by Product Line:

                

Satellite Revenue

   $ 6,651     $ 3,895  

Government Non-Space Revenue

     5,335       6,744  

Other Commercial & Industrial Revenue

     965       1,915  

Consolidated revenues

   $ 12,951     $ 12,554