Note 10 - 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. Based upon this evaluation, as of July 31, 2019, the Company had two segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).

As of July 31, 2019, the RF Connector segment consisted of one division and the Custom Cabling segment was composed of three divisions. The four divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, and C Enterprises. While each segment had similar products and services, with one major exception, there was little overlapping of these services to their customer base. In addition, sales of product and services for the RF Connector segment were primarily through the distribution channel while the Custom Cabling segment sales were through a combination of distribution and direct to the end customer.

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 RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, and C Enterprises divisions constitute the Custom Cabling 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, 2019 and 2018 (in thousands):


	Three Months Ended July 31,				Nine Months Ended July 31,
	2019		2018		2019		2018
United States	$	15,154	$	11,652	$	39,075	$	39,790
Foreign Countries:
Canada		156		142		433		421
Mexico		109		—		109		39
All Other		92		26		167		52
		357		168		709		512

Totals	$	15,511	$	11,820	$	39,784	$	40,302

Net sales, income from continuing operations before provision for income taxes and other related segment information for the three months ended July 31, 2019 and 2018 are as follows (in thousands):


	RF Connector		Custom Cabling
	and		Manufacturing and
2019	Cable Assembly		Assembly		Corporate		Total
Net sales	$	3,462	$	12,049	$	—	$	15,511
Income from continuing operations before provision for income taxes		151		1,125		39		1,315
Depreciation and amortization		40		100		—		140
Total assets		6,969		15,007		14,137		36,113

2018
Net sales	$	3,139	$	8,681	$	—	$	11,820
Income from continuing operations before provision for income taxes		219		1,796		13		2,028
Depreciation and amortization		42		87		—		129
Total assets		6,336		9,006		17,571		32,913

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the nine months ended July 31, 2019 and 2018 are as follows (in thousands):


	RF Connector		Custom Cabling
	and		Manufacturing and
2019	Cable Assembly		Assembly		Corporate		Total
Net sales	$	10,061	$	29,723	$	—	$	39,784
Income from continuing operations before provision for income taxes		697		2,727		75		3,499
Depreciation and amortization		130		288		—		418
Total assets		6,969		15,007		14,137		36,113

2018
Net sales	$	8,503	$	31,799	$	—	$	40,302
Income (loss) from continuing operations before provision for income taxes		(420)		6,753		19		6,352
Depreciation and amortization		129		254		—		383
Total assets		6,336		9,006		17,571		32,913