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Note 8 - Segment Information
 3 Months Ended
Jan. 31, 2025
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, 2025, we had two reportable segments – RF Connector and Cable Assembly (“RF Connector”) segment and Custom Cabling Manufacturing and Assembly (“Custom Cabling”) segment.

 

On August 1, 2023, C Enterprises moved and transitioned its physical operations into the RF Connector office in San Diego, CA. Given the synergies in consolidating both the operating divisions into one building, C Enterprises has been included in the RF Connector segment since August 1, 2023. Further, since the acquisition of C Enterprises in 2019, the customer base for the division has shifted more towards distribution as opposed to direct to end customer which is more aligned with the RF Connector segment. The segment change of including C Enterprise as part of the RF Connector segment was made retroactive to the beginning of our fiscal year starting November 1, 2022 and reclassified for fiscal year 2022 for comparative purposes. In annual and interim periods prior to the transition on August 1, 2023, C Enterprises was included in the Custom Cabling segment.

 

The RF Connector segment consists of three divisions and the Custom Cabling segment also consists of three 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 products 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 end customer.

 

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, 2025 and 2024 (in thousands):

 

   

Three Months Ended January 31,

  
   

2025

    

2024

  
                 

United States

   $ 18,058     $ 12,060  

Foreign Countries:

                

Canada

     636       882  

China

     221       174  

All Other

     285       342  
      1,142       1,398  
                 

Totals

   $ 19,200     $ 13,458  

 

Net sales to external customers, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended January 31, 2025 and 2024 are as follows (in thousands):

 

   

RF Connector

    

Custom Cabling

                  
   

and

   

Manufacturing and

                 
   

Cable Assembly

    

Assembly

    

Corporate

    

Total

  
2025                                

Net sales

   $ 8,724     $ 10,476     $ -     $ 19,200  

(Loss) income before benefit for income taxes

     (1,503 )     1,559       (265 )     (209 )

Depreciation and amortization

     518       98       -       616  

Total assets

     46,602       19,923       3,904       70,429  

Expenditures for Segment Assets

     9       18       -       27  
                                 

2024

                                

Net sales

   $ 8,807     $ 4,651     $ -     $ 13,458  

Loss before benefit for income taxes

     (1,729 )     (261 )     (203 )     (2,193 )

Depreciation and amortization

     513       120       -       633  

Total assets

     52,214       16,667       10,248       79,129  

Expenditures for Segment Assets

     128       15       -       143