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Note 9 - Segment Information
 9 Months Ended
Jul. 31, 2022
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, 2022, we had two segments – the RF Connector segment and the Custom Cabling Manufacturing and Assembly (“Custom Cabling”) segment.

 

The RF Connector segment consists of two divisions and the Custom Cabling segment consists of four divisions. The six 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, Schrofftech, and Microlab. 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 and Microlab divisions 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, 2022 and 2021 (in thousands):

 

   

Three Months Ended July 31,

    

Nine Months Ended July 31,

  
   

2022

    

2021

    

2022

    

2021

  
                                 

United States

   $ 19,925     $ 14,624     $ 56,292     $ 34,341  
Foreign Countries:                                

Canada

     2,218       499       3,179       1,591  

Mexico

     29       51       106       77  

All Other

     1,670       83       2,688       307  
      3,917       633       5,973       1,975  
                                 

Totals

   $ 23,842     $ 15,257     $ 62,265     $ 36,316  

 

 

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

 

   

RF Connector

    

Custom Cabling

                  
   

and

   

Manufacturing and

                 

2022

  

Cable Assembly

    

Assembly

    

Corporate

    

Total

  

Net sales

   $ 10,495     $ 13,347     $ -     $ 23,842  

Income (loss) before provision for income taxes

     998       600       (677 )     911  

Depreciation and amortization

     390       147       -       537  

Total assets

     48,351       26,553       12,291       87,195  
                                 

2021

                                

Net sales

   $ 3,933     $ 11,324     $ -     $ 15,257  

Income (loss) 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  

 

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the nine months ended July 31, 2022 and 2021 were as follows (in thousands): 

 

   

RF Connector

    

Custom Cabling

                  
   

and

   

Manufacturing and

                 

2022

  

Cable Assembly

    

Assembly

    

Corporate

    

Total

  

Net sales

   $ 21,928     $ 40,337     $ -     $ 62,265  

Income (loss) before benefit from income taxes

     1,621       1,721       (2,149 )     1,193  

Depreciation and amortization

     720       435       -       1,155  

Total assets

     48,351       26,553       12,291       87,195  
                                 

2021

                                

Net sales

   $ 11,060     $ 25,256     $ -     $ 36,316  

Income (loss) before benefit from 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