Operating Segment, Geographic Information and Significant Customers

6 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Operating Segment, Geographic Information and Significant Customers

Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with FASB ASC 280, Segment Reporting.

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:

	U.S.		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED DECEMBER 31, 2017
Net revenues to unaffiliated customers	$	105,687	$	9,417	$	2,808	$	—		$	117,912
Inter-geographic revenues	3,169		43		—		(3,212		)	—
Net revenues	$	108,856	$	9,460	$	2,808	$	(3,212	)	$	117,912
THREE MONTHS ENDED DECEMBER 31, 2016
Net revenues to unaffiliated customers	$	91,407	$	5,809	$	798	$	—		$	98,014
Inter-geographic revenues	1,893		—		—		(1,893		)	—
Net revenues	$	93,300	$	5,809	$	798	$	(1,893	)	$	98,014
SIX MONTHS ENDED DECEMBER 31, 2017
Net revenues to unaffiliated customers	$	203,402	$	16,895	$	3,684	$	—		$	223,981
Inter-geographic revenues	4,916		65		—		(4,981		)	—
Net revenues	$	208,318	$	16,960	$	3,684	$	(4,981	)	$	223,981
SIX MONTHS ENDED DECEMBER 31, 2016
Net revenues to unaffiliated customers	$	174,455	$	6,662	$	4,546	$	—		$	185,663
Inter-geographic revenues	5,180		15		—		(5,195		)	—
Net revenues	$	179,635	$	6,677	$	4,546	$	(5,195	)	$	185,663

In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company increased the proportion of its revenue derived from the sale of components in different technological areas, and also increased the amount of revenue associated with combining technologies into more complex and diverse products including modules, sub-assemblies and integrated subsystems. The following tables present revenue consistent with the Company's strategy of expanding its technological capabilities and program content.

The following table below presents the Company's net revenue by end user for the periods presented:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
Domestic (1)	$	89,969	$	83,052	$	179,647	$	156,578
International/Foreign Military Sales (2)	27,943		14,962		44,334		29,085
Total Net Revenue	$	117,912	$	98,014	$	223,981	$	185,663

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. 

(2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S.

The following table below presents the Company's net revenue by end application for the periods presented:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
Radar (1)	$	44,678	$	44,803	$	81,218	$	82,292
Electronic Warfare (2)	29,411		21,304		57,419		42,284
Other Sensor & Effector (3)	10,992		4,661		20,741		9,307
Total Sensor & Effector	85,081		70,768		159,378		133,883
C4I (4)	13,562		6,613		26,388		10,953
Other (5)	19,269		20,633		38,215		40,827
Total Net Revenue	$	117,912	$	98,014	$	223,981	$	185,663

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table below presents the Company's net revenue by product grouping for the periods presented:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
Components (1)	$	39,908	$	24,636	$	72,720	$	44,468
Modules and Sub-assemblies (2)	41,728		38,560		89,460		75,152
Integrated Subsystems (3)	36,276		34,818		61,801		66,043
Total Net Revenue	$	117,912	$	98,014	$	223,981	$	185,663

(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices.

(2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers.

(3) Integrated Subsystems include multiple modules and/or subassemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company.

The geographic distribution of the Company’s long-lived assets is summarized as follows:

	U.S.		Europe		Asia Pacific		Eliminations		Total
December 31, 2017	$	50,305	$	1,323	$	12	$	—	$	51,640
June 30, 2017	$	50,340	$	1,288	$	15	$	—	$	51,643

Identifiable long-lived assets exclude goodwill and intangible assets.

Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
Lockheed Martin Corporation	20	%	13	%	19	%	19	%
Raytheon Company	17	%	22	%	19	%	19	%
Northrop Grumman Corporation	12	%	10	%	11	%	*
	49	%	45	%	49	%	38	%

* Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016
F-35	*		11	%	*		*
Aegis	*		*		*		10	%
	—	%	11	%	—	%	10	%

* Indicates that the amount is less than 10% of the Company’s revenues for the respective period.