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Note 9 - Segment Information
 9 Months Ended
Jul. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
9
–
Segment i
nformation
   
We aggregate operating divisions into
two
reporting 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; and (
5
) if applicable, the nature of the regulatory environment. Based upon this evaluation, as of
July 31, 2020,
we had
two
segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).
 
The RF Connector segment consisted of
one
division and the Custom Cabling segment was composed of
four
divisions. The
five
divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. While each segment has similar products and services, there was little overlapping of these services to their customer base. The biggest difference in segments is in the channels of sales; sales or 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 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, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment.
 
As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, 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.
 
All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the
three
and
nine
months ended
July 31, 2020
and
2019
(in thousands):
 
   
Three Months Ended July 31,
    
Nine Months Ended July 31,
  
   
2020
    
2019
    
2020
    
2019
  
                                 
United States
   $
9,315
     $
15,154
     $
31,471
     $
39,075
  
Foreign Countries:
                                
Canada
    
124
      
156
      
530
      
433
  
Mexico
    
-
      
109
      
12
      
109
  
All Other
    
105
      
92
      
335
      
167
  
     
229
      
357
      
877
      
709
  
                                 
Totals
   $
9,544
     $
15,511
     $
32,348
     $
39,784
  
 
Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the
three
months ended
July 31, 2020
and
2019
are as follows (in thousands): 
  
   
RF Connector
    
Custom Cabling
    
 
 
 
  
 
 
 
   
and
   
Manufacturing and
   
 
 
 
  
 
 
 
 
  
Cable Assembly
    
Assembly
    
Corporate
    
Total
  
2020
                                
Net sales
   $
3,611
     $
5,933
     $
-
     $
9,544
  
Income (loss) before benefit for income taxes
    
500
      
(720
 )    
1
      
(219
 )
Depreciation and amortization
    
40
      
212
      
-
      
252
  
Total assets
    
8,413
      
15,539
      
16,942
      
40,894
  
                                 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net sales
   $
3,462
     $
12,049
     $
-
     $
15,511
  
Income 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
  
 
Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the
nine
months ended
July 31, 2020
and
2019
are as follows (in thousands):
 
   
RF Connector
    
Custom Cabling
    
 
 
 
  
 
 
 
   
and
   
Manufacturing and
   
 
 
 
  
 
 
 
   
Cable Assembly
    
Assembly
    
Corporate
    
Total
  
2020
                                
Net sales
   $
10,568
     $
21,780
     $
-
     $
32,348
  
Income (loss) before benefit for income taxes
    
1,479
      
(1,886
 )    
19
      
(388
 )
Depreciation and amortization
    
123
      
637
      
-
      
760
  
Total assets
    
8,413
      
15,539
      
16,942
      
40,894
  
                                 
2019
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Net sales
   $
10,061
     $
29,723
     $
-
     $
39,784
  
Income 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