Discontinued operations

6 Months Ended

Apr. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Note 3 - Discontinued operations

On October 31, 2018, the Company sold all of the assets and liabilities of its subsidiary, Comnet Telecom Supply, Inc. (“Comnet”), to RAP Acquisition Inc., a New Jersey corporation. Comnet was a New Jersey-based manufacturer and supplier of telecommunications and data products, including fiber optic cables, cabling technologies, custom patch cord assemblies, data center consoles, and other data center equipment. This division was one of the three subsidiaries in the Company’s Custom Cabling Manufacturing Assembly segment. For the three months ended April 30, 2018, the Company recognized pretax income of $57,000 from the discontinued operations of Comnet, and income tax expense of $18,000. The major line items constituting the income from discontinued operations of Comnet for the three months ended April 30, 2018 are as follows (in thousands):

	Three Months Ended April 30, 2018
Major line items constituting pretax income from discontinued operations:
Net sales	$	1,866
Cost of sales		(1,429	)
Gross profit		437
Selling, general and administrative expense		(380	)
Pretax income from discontinued operations		57
Provision for income taxes		18
Income from discontinued operations	$	39

For the six months ended April 30, 2018, the Company recognized pretax income of $253,000 from the discontinued operations of Comnet, and income tax expense of $64,000. The major line items constituting the income from discontinued operations of Comnet for the six months ended April 30, 2018 are as follows (in thousands):

	Six Months Ended April 30, 2018
Major line items constituting pretax income from discontinued operations:
Net sales	$	4,240
Cost of sales		(3,194	)
Gross profit		1,046
Selling, general and administrative expense		(793	)
Pretax income from discontinued operations		253
Provision for income taxes		64
Income from discontinued operations	$	189