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Segment Information
 3 Months Ended
Jan. 31, 2013
Segment Reporting [Abstract]  
Segment Information

Note 7 - 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 month periods ended January 31, 2013 and 2012:

 

    Three Months Ended January 31  
    2013     2012  
             
United States   $ 10,049,242     $ 5,189,872  
Foreign countries:                
Canada     148,249       141,670  
Israel     96,449       98,073  
Mexico     191,369       95,199  
All other     23,922       33,940  
                 
 Totals   $ 10,509,231     $ 5,558,754  

 

Net sales, income (loss) before provision for income taxes and other related segment information for the three months ended January 31, 2013 and 2012 are as follows:

 

 

2013   RF Connectors and Cable Assembly     Cables Unlimited     Medical Cabling and Interconnector     RF Wireless     Corporate     Total  
Net sales   $ 3,817,343     $ 5,391,856     $ 686,455     $ 613,577     $ -     $ 10,509,231  
Income before provision for income taxes     286,680       1,496,314       192,993       86,261       1,160       2,063,408  
Depreciation and amortization     32,227       85,455       40,314       1,242               159,238  
                                                 
2012                                                
Net sales   $ 3,104,399     $ 1,443,716     $ 673,761     $ 336,878     $ -     $ 5,558,754  
Income (loss) before provision for income taxes     103,856       36,757       182,264       (108,495 )     5,080       219,462  
Depreciation and amortization     47,289       101,683       10,508       2,141               161,621