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Note 9 - Segment Information
 9 Months Ended
Jul. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 9 – Segment information

 

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, 2021, we had two segments – RF Connector and Cable Assembly (“RF Connector segment”) and 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, ROU 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, 2021 and 2020 (in thousands):

 

  

Three Months Ended July 31,

  

Nine Months Ended July 31,

 
  

2021

  

2020

  

2021

  

2020

 
                 

United States

 $14,624  $9,315  $34,341  $31,471 

Foreign Countries:

                

Canada

  499   124   1,591   530 

Mexico

  51   -   77   12 

All Other

  83   105   307   335 
   633   229   1,975   877 
                 

Totals

 $15,257  $9,544  $36,316  $32,348 

 

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended July 31, 2021 and 2020 are as follows (in thousands): 

 

  

RF Connector

  

Custom Cabling

         
  

and

  

Manufacturing and

         

2021

 

Cable Assembly

  

Assembly

  

Corporate

  

Total

 

Net sales

 $3,933  $11,324  $-  $15,257 

Income before provision for income taxes

  255   941   2   1,198 

Depreciation and amortization

  35   143   -   178 

Total assets

  7,188   22,524   16,702   46,414 
                 

2020

                

Net sales

 $3,611  $5,933  $-  $9,544 

Income (loss) before provision for income taxes

  500   (720)  1   (219)

Depreciation and amortization

  40   212   -   252 

Total assets

  8,413   15,539   16,942   40,894 

 

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the nine months ended July 31, 2021 and 2020 are as follows (in thousands): 

 

  

RF Connector

  

Custom Cabling

         
  

and

  

Manufacturing and

         

2021

 

Cable Assembly

  

Assembly

  

Corporate

  

Total

 

Net sales

 $11,060  $25,256  $-  $36,316 

Income before provision for income taxes

  2,202   1,090   2,803   6,095 

Depreciation and amortization

  105   487   -   592 

Total assets

  7,188   22,524   16,702   46,414 
                 

2020

                

Net sales

 $10,568  $21,780  $-  $32,348 

Income (loss) before benefit from income taxes

  1,479   (1,886)  19   (388)

Depreciation and amortization

  123   637   -   760 

Total assets

  8,413   15,539   16,942   40,894