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Segment Information
 9 Months Ended
Jul. 31, 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 nine month periods ended July 31, 2012 and 2011:

 

  

    Three Months Ended July 31     Nine Months Ended July 31  
    2012     2011     2012     2011  
                         
United States   $ 7,064,430     $ 4,594,086     $ 18,592,094     $ 12,300,852  
Foreign countries:                                
 Canada     172,693       124,030       476,351       543,131  
 Israel     120,131       59,504       237,090       173,295  
 Mexico     88,607       96,874       322,623       304,453  
 All other     26,552       73,259       75,196       157,879  
                                 
    $ 7,472,413     $ 4,947,753     $ 19,703,354     $ 13,479,610  

 

Net sales, income (loss) before provision for income taxes and other related segment information for the three months ended July 31, 2012 and 2011 are as follows:

 

2012   RF Connectors
and
Cable Assembly		     Cables
Unlimited		     Medical
Cabling and
Interconnector		     RF
Wireless		     Corporate     Total  
Net sales   $ 3,870,502     $ 2,727,791     $ 570,242     $ 303,878     $ -     $ 7,472,413  
Income (loss) before provision for income taxes     669,315       453,458       116,380       (137,566 )     3,392       1,104,979  
Depreciation and amortization     59,322       82,111       10,508       1,688               153,629  
                                                 
2011                                                
Net sales   $ 3,273,835     $ 909,277     $ 510,001     $ 254,640     $ -     $ 4,947,753  
Income (loss) before provision for income taxes     (98,849 )     88,137       120,609       (118,407 )     10,132       1,622  
Depreciation and amortization     44,703       73,596       8,251       464               127,014  

 

Net sales, income (loss) before provision for income taxes and other related segment information for the nine months ended July 31, 2012 and 2011 are as follows:

 

2012     RF Connectors
and
Cable Assembly		     Cables
Unlimited		     Medical
Cabling and
Interconnector		     RF
Wireless		     Corporate     Total  
Net sales     $ 10,391,099     $ 6,007,569     $ 2,012,035     $ 1,292,651     $  -      $ 19,703,354  
Income (loss) before provision for income taxes       1,154,707       648,193       555,702       (142,898)       15,619       2,231,323  
Depreciation and amortization       162,684       257,684       31,525       5,258               457,151  

 

                                                  
2011                                                  
Net sales     $ 10,144,053     $    909,277     $ 1,808,871     $ 617,409     $  -      $ 13,479,610  
Income (loss) before provision for income taxes       1,135,973       88,137       426,509       (508,961 )     31,378       1,173,036  
Depreciation and amortization       131,993       73,596       22,303       1,216               229,108