Note 9 - Segment information

The Company aggregates operating divisions into operating segments that 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 January 31, 2018, the Company had two segments: 1) RF Connector and Cable Assembly and 2) Custom Cabling Manufacturing and Assembly based upon this evaluation.

The RF Connector and Cable Assembly segment consisted of one division and the Custom Cabling Manufacturing and Assembly segment was composed of three divisions. The four divisions that met the quantitative thresholds for segment reporting are Connector and Cable Assembly, Cables Unlimited, Comnet and Rel-Tech. 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 Connector and Cable Assembly division constitutes the RF Connector and Cable Assembly segment, and the Cables Unlimited, Comnet and Rel-Tech divisions constitute the Custom Cabling Manufacturing and Assembly 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 months ended January 31, 2018 and 2017 (in thousands):

	2018		2017

United States	$	10,138	$	6,536
Foreign Countries:
Canada		153		46
Mexico		39		7
All Other		11		28
		203		81

Totals	$	10,341	$	6,617

Net sales, income (loss) from continuing operations before provision (benefit) for income and other related segment information for the three months ended January 31, 2018 and 2017 are as follows (in thousands):

	RF Connector		Custom Cabling
	and		Manufacturing and
	Cable Assembly		Assembly		Corporate		Total
2018
Net sales	$	2,630	$	7,711	$	-	$	10,341
Income (loss) from continuing operations before provision (benefit) for income taxes		(12)		566		3		557
Depreciation and amortization		44		168		-		212

2017
Net sales	$	2,535	$	4,082	$	-	$	6,617
Loss from continuing operations before benefit for income taxes		(18)		(341)		20		(339)
Depreciation and amortization		47		173		-		220