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Segment information
9 Months Ended
Jul. 31, 2016
Segment Reporting [Abstract]  
Segment information
Note 10 - Segment information
   
The Company aggregates operating divisions into operating segments which have similar economic characteristics primarily in 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. As of July 31, 2016, the Company had two segments based upon this evaluation - RF Connector and Cable Assembly and Custom Cabling Manufacturing. The Company decided to close the Medical Cabling and Interconnect segment in March 2016.
 
During the fiscal quarter ended July 31, 2016, the RF Connector and Cable Assembly segment consisted of two divisions and the Custom Cabling Manufacturing and Assembly segment was composed of three divisions. The five divisions that meet the quantitative thresholds for segment reporting are Connector and Cable Assembly, Aviel (until the time of sale), Cables Unlimited, Comnet and Rel-Tech. These divisions aggregated into the RF Connector and Cable Assembly segment and into the Custom Cabling Manufacturing and Assembly segment have similar products that are marketed to their respective customer base and production and product development processes that 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 aggregated the Connector and Cable Assembly and Aviel (until the time of sale) divisions into the RF Connector and Cable Assembly segment, and the Cables Unlimited, Comnet and Rel-Tech division constituted the Custom Cabling Manufacturing 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. Accounts receivable, inventory, property and equipment, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same 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 months ended July 31, 2016 and 2015 (in thousands):
 
 
 
Three Months Ended July 31,
 
Nine Months Ended July 31,
 
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
7,441
 
$
7,989
 
$
21,536
 
$
21,242
 
Foreign countries:
 
 
 
 
 
 
 
 
 
 
 
 
 
Canada
 
 
90
 
 
64
 
 
236
 
 
290
 
Israel
 
 
1
 
 
76
 
 
63
 
 
264
 
Mexico
 
 
85
 
 
135
 
 
234
 
 
324
 
All other
 
 
23
 
 
51
 
 
90
 
 
103
 
 
 
 
199
 
 
326
 
 
623
 
 
981
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
$
7,640
 
$
8,315
 
$
22,159
 
$
22,223
 
 
Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the three months ended July 31, 2016 and 2015 are as follows (in thousands): 
 
 
 
RF Connector
 
Custom Cabling
 
 
 
 
 
 
 
 
 
and
 
Manufacturing and
 
 
 
 
 
 
 
2016
 
Cable Assembly
 
Assembly
 
Corporate
 
Total
 
Net sales
 
$
2,576
 
$
5,064
 
$
-
 
$
7,640
 
Loss from continuing operations before benefit for income taxes
 
 
(541)
 
 
(126)
 
 
(32)
 
 
(699)
 
Depreciation and amortization
 
 
49
 
 
192
 
 
-
 
 
241
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
2,909
 
$
5,406
 
$
-
 
$
8,315
 
Income (loss) from continuing operations before provision (benefit) for income taxes
 
 
197
 
 
(254)
 
 
4
 
 
(53)
 
Depreciation and amortization
 
 
54
 
 
276
 
 
-
 
 
330
 
 
Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the nine months ended July 31, 2016 and 2015 are as follows (in thousands): 
 
 
 
RF Connector
 
Custom Cabling
 
 
 
 
 
 
 
 
 
and
 
Manufacturing and
 
 
 
 
 
 
 
2016
 
Cable Assembly
 
Assembly
 
Corporate
 
Total
 
Net sales
 
$
6,611
 
$
15,548
 
$
-
 
$
22,159
 
Income (loss) from continuing operations before provision (benefit) for income taxes
 
 
(1,243)
 
 
(111)
 
 
34
 
 
(1,320)
 
Depreciation and amortization
 
 
146
 
 
623
 
 
-
 
 
769
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
8,949
 
$
13,274
 
$
-
 
$
22,223
 
Income (loss) from continuing operations before provision (benefit) for income taxes
 
 
574
 
 
(185)
 
 
19
 
 
408
 
Depreciation and amortization
 
 
146
 
 
573
 
 
-
 
 
719