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Segment Reporting
 3 Months Ended
Sep. 01, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING

12. SEGMENT REPORTING

In accordance with ASC 280-10, Segment Reporting, we have two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO 2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvys provides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer (“OEM”) markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

 

                 
    Three Months Ended  
    September 1,     September 3,  
    2012     2011  

EDG

                

Net Sales

   $ 25,627     $ 30,729  

Gross Profit

   $ 8,000     $ 9,671  
     

Canvys

                

Net Sales

   $ 10,023     $ 10,782  

Gross Profit

   $ 2,646     $ 3,031  

A reconciliation of assets to the relevant consolidated amount is as follows (in thousands):

 

                 
    September 1,     June 2,  
    2012     2012  

Segment assets

   $ 55,753     $ 54,768  

Cash

     41,238       43,893  

Investments—current

     98,714       105,009  

Other current assets (1)

     11,747       10,723  

Net property

     4,201       4,375  

Investments—non-current

     10,975       10,683  

Other assets (2)

     1,448       1,458  

Assets of discontinued operations (3)

     358       514  
   

 

 

    

 

 

  

Total assets

   $ 224,434     $ 231,423  
   

 

 

    

 

 

  

  

 

(1) Other current assets include miscellaneous receivables, prepaid expenses, and current deferred income taxes.
(2) Other assets primarily include non-current deferred income taxes.
(3) See Footnote 4—Discontinued Operations.

 

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

 

                 
    Three Months Ended  
    September 1,     September 3,  
    2012     2011  

Net Sales

                

North America

   $ 15,738     $ 16,553  

Asia/Pacific

     6,347       7,894  

Europe

     10,744       13,558  

Latin America

     2,447       2,830  

Other

     374       676  
   

 

 

    

 

 

  

Total

   $ 35,650     $ 41,511  
   

 

 

    

 

 

  

Gross Profit

                

North America

   $ 5,288     $ 5,365  

Asia/Pacific

     2,193       2,660  

Europe

     3,226       4,385  

Latin America

     828       1,062  

Other

     (889 )      (770 ) 
   

 

 

    

 

 

  

Total

   $ 10,646     $ 12,702  
   

 

 

    

 

 

  

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.