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SEGMENT INFORMATION
 3 Months Ended
Jul. 31, 2025
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: communication 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 communication 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. This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the U.S. market.

 

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 chief operating decision maker (“CODM”) views the business.

 

The accounting policies of the two segments are the same as those described in “Note 1. Summary of Accounting Policies” to the consolidated financial statements included in the Form 10-K. Our Chief Executive Officer (“CEO”) serves as our CODM who evaluates the segment performance and allocates resources to them based on operating income which is defined as income before investment income, interest expense, other expenses, and income taxes. Operating income by segment is used to monitor segment results compared to prior periods, forecasted results, and the annual plan. All acquired assets, including intangible assets, are included in the assets of both reporting segments.

The tables below present segment revenues, significant segment expenses, which consist of segment cost of revenues and segment R&D expenses, and segment operating income for each reportable segment and on a consolidated basis as reported in the consolidated statements of operations for the three months ended July 31, 2025 and 2024 (in thousands):

 

   Three Months Ended July 31, 
   2025   2024 
Revenues:        
FEI-NY  $10,354   $10,975 
FEI-Zyfer   3,718    4,272 
Less intersegment revenues   (260)   (170)
Consolidated revenues  $13,812   $15,077 
           
Cost of revenues:          
FEI-NY  $6,947   $6,588 
FEI-Zyfer   2,091    1,946 
Less intersegment cost of revenues   (308)   (155)
Consolidated cost of revenues  $8,730   $8,379 
           
Research and development expenses:          
FEI-NY  $550   $881 
FEI-Zyfer   583    607 
Consolidated research and development expenses  $1,133   $1,488 
           
Operating income:          
FEI-NY  $166   $1,377 
FEI-Zyfer   300    1,140 
Less intersegment margin   48    (15)
Corporate   (150)   (137)
Consolidated operating income  $364   $2,365 

 

Included in the determination of operating income is selling, general, and administrative expenses of $2.7 million and $2.1 million for the three months ended July 31, 2025 and 2024, respectively, for the FEI-NY segment, and $0.7 million and $0.6 million for the three months ended July 31, 2025 and 2024, respectively, for the FEI-Zyfer segment.

The tables below present the identifiable assets of each reportable segment and on a consolidated basis as reported in the consolidated balance sheets as of July 31, 2025 and April 30, 2025 and the depreciation and amortization charges related to these identifiable assets for the three months then ended (in thousands):

 

   July 31,
2025		   April 30,
2025		 
Identifiable assets:        
FEI-NY  $38,235   $39,125 
FEI-Zyfer   23,946    23,865 
Less intersegment balances   (92)   (140)
Corporate   31,114    30,887 
Consolidated identifiable assets  $93,203   $93,737 

 

   Three Months Ended July 31, 
   2025   2024 
         
Depreciation and amortization:        
FEI-NY  $432   $433 
FEI-Zyfer   38    28 
Consolidated depreciation and amortization expense  $470   $461 

 

Total revenue recognized over time as Percentage of Completion (“POC”) and Passage of Title (“POT”) was approximately $12.4 million and $1.4 million, respectively, of the $13.8 million reported for the three months ended July 31, 2025. Total revenue recognized over time as POC and POT was approximately $14.5 million and $0.6 million, respectively, of the $15.1 million reported for the three months ended July 31, 2024.

 

The amounts by segment and product line were as follows (in thousands):

 

   Three Months Ended July 31, 
   2025   2024 
   POC
Revenue		   POT
Revenue		   Total
Revenue		   POC
Revenue		   POT
Revenue		   Total
Revenue		 
FEI-NY  $9,748   $606   $10,354   $10,507   $468   $10,975 
FEI-Zyfer   2,680    1,038    3,718    4,001    271    4,272 
Intersegment   -    (260)   (260)   -    (170)   (170)
Revenue  $12,428   $1,384   $13,812   $14,508   $569   $15,077 

 

   Three Months Ended July 31, 
   2025   2024 
Revenues by product line:        
Satellite revenue  $6,514   $8,263 
Government non-space revenue   6,859    6,270 
Other commercial & industrial revenue   439    544 
Consolidated revenues  $13,812   $15,077