XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.0.1
Note 8 - Segment Information
 3 Months Ended
Jan. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 8 – 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 January 31, 2022, 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 months ended January 31, 2022 and 2021 (in thousands):

 

   

Three Months Ended January 31,

  
   

2022

    

2021

  
                 

United States

   $ 16,418     $ 9,379  

Foreign Countries:

                

Canada

     297       525  

Mexico

     25       -  

All Other

     178       98  
      500       623  
                 

Totals

   $ 16,918     $ 10,002  

 

Net sales, income (loss) before benefit for income taxes and other related segment information for the three months ended January 31, 2022 and 2021 are as follows (in thousands): 

 

   

RF Connector

    

Custom Cabling

                  
   

and

   

Manufacturing and

                 

2022

  

Cable Assembly

    

Assembly

    

Corporate

    

Total

  

Net sales

   $ 3,923     $ 12,995     $ -     $ 16,918  

Income (loss) before benefit for income taxes

     56       314       (727 )     (357 )

Depreciation and amortization

     37       143       -       180  

Total assets

     7,572       24,635       17,529       49,736  
                                 

2021

                                

Net sales

   $ 3,575     $ 6,427     $ -     $ 10,002  

Income (loss) before provision for income taxes

     453       (1,042 )     (8 )     (597 )

Depreciation and amortization

     35       202       -       237  

Total assets

     7,667       15,202       17,766       40,635