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Segment information
 12 Months Ended
Oct. 31, 2011
Segment information
Note 5 - Segment information
 
The Company aggregates operating divisions into operating segments which have similar economic characteristics and divisions are similar in the majority of the following areas: (1) the nature of the product and services; (2) the nature of the production process; (3) the type or class of customer for their products and services; (4) the methods used to distribute their products or services; (5) if applicable, the nature of the regulatory environment. The Company has four segments - RF Connector and Cable Assembly, Medical Cabling and Interconnector, RF Wireless, and Cables Unlimited based upon this evaluation.
 
The RF Connector and Cable Assembly segment is comprised of three divisions, the Cables Unlimited segment and the Medical Cabling and Interconnector segment are each comprised of one division, while the RF Wireless segment is comprised of two divisions.  The four divisions that meet the quantitative thresholds for segment reporting are Connector & Cable Assembly, Cables Unlimited, Bioconnect and RF Neulink. Each of the other divisions aggregated into these segments have similar products that are marketed to their respective customer base; production and product development processes are similar in nature. The specific customers are different for each division; however, there is some overlapping of product sales to them. The methods used to distribute products are similar within each division aggregated.
 
Management identifies the Company’s segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the Company aggregates the Connector & Cable Assembly, Aviel, and Oddcables.com divisions into the RF Connector and Cable Assembly segment, while the Cables Unlimited division constitutes the Cables Unlimited segment. The Bioconnect Division makes up the Medical Cabling and Interconnector segment, and the RF Neulink and RadioMobile divisions make up the RF Wireless segment.
 
As reviewed by the Company’s chief operating decision maker, the Company evaluates the performance of each segment based on income or loss before income taxes. The Company charges depreciation and amortization directly to each division within the segment. All stock based compensation is attributed to the RF Connector and Cable Assembly segment. Inventory, fixed assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.
 
Substantially all of the Company’s operations are conducted in the United States; however, the Company derives a portion of its revenue from export sales. The Company attributes sales to geographic areas based on the location of the customers. The following table presents the sales of the Company by geographic area for the years ended October 31, 2011 and 2010:
 
   
2011
    
2010
  
             
United States
  
$
17,330,928
    
$
14,504,628
  
Foreign countries:
                
Canada
    
1,117,660
      
524,878
  
Israel
    
386,426
      
696,022
  
Mexico
    
388,191
      
429,718
  
All other
    
210,298
      
166,932
  
                 
Totals
  
$
19,433,503
    
$
16,322,178
  
Net sales, income before provision for income taxes and other related segment information as of October 31, 2011 and 2010, and for the years then ended follows:

2011
  
RF Connectors
and
Cable Assembly
    
Cables
Unlimited
    
Medical
Cabling and
Interconnector
    
RF
Wireless
    
Corporate
    
Total
  
Net sales
  
$
13,867,770
    
$
2,643,552
    
$
2,153,639
    
$
768,542
    
$ 
-
    
$
19,433,503
  
Income (loss) before provision for income taxes
    
1,317,319
      
21,757
      
438,839
      
(669,383
)
    
43,311
      
1,151,843
  
Depreciation and amortization
    
177,329
      
179,607
      
32,811
      
1,886
              
391,633
  
Total assets
    
5,280,427
      
7,614,660
      
585,557
      
503,890
      
10,393,412
      
24,377,946
  
Additions to equipment and furnishings
    
272,606 
      
18,549
      
77,050
      
-
      
-
      
368,205
  
                                                 
2010
                                                
Net sales
  
$
14,094,158
    
$
-
    
$
1,724,819
    
$
503,201
    
$ 
-
    
$
16,322,178
  
Income (loss) before provision for income taxes
    
2,606,201
      
-
      
306,161
      
(908,142
)
    
86,614
      
2,090,834
  
Depreciation, amortization and impairment
    
164,055
      
-
      
23,315
      
26,896
      
-
      
214,266
  
Total assets
    
4,204,819
      
-
      
316,149
      
617,202
      
13,971,193
      
19,109,363
  
Additions to equipment and furnishings
    
115,839
      
-
      
32,549
      
3,462
      
-
      
151,850