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Segment Information
 6 Months Ended
Apr. 30, 2012
Segment Information

Note 8 - 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 Wireless. 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 three and six month periods ended April 30, 2012 and 2011:

  

    Three Months Ended April 30     Six Months Ended April 30  
    2012     2011     2012     2011  
                         
United States   $ 6,331,240     $ 4,176,261     $ 11,521,111     $ 7,686,599  
Foreign countries:                                
   Canada     161,988       77,982       303,658       418,527  
   Israel     18,886       671       116,959       113,792  
   Mexico     138,816       93,467       234,016       207,580  
   All other     21,257       43,181       55,197       105,359  
                                 
    $ 6,672,187     $ 4,391,562     $ 12,230,941     $ 8,531,857  

 

Net sales, income (loss) before provision for income taxes and other related segment information for the three months ended April 30, 2012 and 2011 are as follows:

 

  RF Connectors
and
Cable Assembly		     Cables
Unlimited		     Medical
Cabling and
Interconnector		     RF
Wireless		     Corporate     Total  
2012                                                
Net sales   $ 3,416,198     $ 1,836,062     $ 768,032     $ 651,895     $ -     $ 6,672,187  
Income before provision for income taxes     381,535       157,979       257,058       103,163       5,299       905,034  
Depreciation and amortization     56,074       73,889       10,508       1,428               141,899  
 
                                                
2011                                                
Net sales   3,463,272     $ -     $ 690,658     $ 237,632     $ -     $ 4,391,562  
Income (loss) before provision for income taxes     608,853       -       172,013       (159,136 )     10,760       632,490  
Depreciation and amortization     44,371       -       7,303       464       -       52,138  

 

 Net sales, income (loss) before provision for income taxes and other related segment information for the six months ended April 30, 2012 and 2011 are as follows:

 

  RF Connectors
and
Cable Assembly		     Cables
Unlimited		     Medical
Cabling and
Interconnector		     RF
Wireless		     Corporate     Total  
2012                                                 
Net sales   $ 6,520,597     $ 3,279,778     $ 1,441,793     $ 988,773     $ -     $ 12,230,941  
Income (loss) before provision for income taxes     485,391       194,736       439,322       (5,332 )     10,379       1,124,496  
Depreciation and amortization     103,363       175,572       21,016       3,569               303,520  
 
                                                
2011                                                
Net sales   $ 6,870,218     $ -     $ 1,298,870     $ 362,769     $ -     $ 8,531,857  
Income (loss) before provision for income taxes     1,234,823       -       305,900       (390,555 )     21,246       1,171,414  
Depreciation and amortization     87,116       -       14,052       926       -       102,094