Discontinued operations

9 Months Ended

Jul. 31, 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 July 31, 2018, the Company recognized pretax income of $127,000 from the discontinued operations of Comnet, and income tax expense of $38,000. The major line items constituting the income from discontinued operations of Comnet for the three months ended July 31, 2018 are as follows (in thousands):


	Three Months Ended
	July 31,
	2018
Major line items constituting pretax income from discontinued operations:
Net sales	$	2,030
Cost of sales		(1,509)
Gross profit		521
Selling, general and administrative expenses		(394)
Pretax income from discontinued operations		127
Provision for income taxes		38
Income from discontinued operations	$	89

For the nine months ended July 31, 2018, the Company recognized pretax income of $380,000 from the discontinued operations of Comnet, and income tax expense of $102,000. The major line items constituting the income from discontinued operations of Comnet for the nine months ended July 31, 2018 are as follows (in thousands):


	Nine Months Ended
	July 31, 2018
Major line items constituting pretax income from discontinued operations:
Net sales	$	6,270
Cost of sales		(4,703)
Gross profit		1,567
Selling, general and administrative expenses		(1,187)
Pretax income from discontinued operations		380
Provision for income taxes		102
Income from discontinued operations	$	278