Operating Segment, Geographic Information and Significant Customers

3 Months Ended

Sep. 27, 2019

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 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
FIRST QUARTER ENDED SEPTEMBER 27, 2019
Net revenues to unaffiliated customers	$	161,996	$	14,440	$	868	$	—		$	177,304
Inter-geographic revenues	972		651		—		(1,623		)	—
Net revenues	$	162,968	$	15,091	$	868	$	(1,623	)	$	177,304
FIRST QUARTER ENDED SEPTEMBER 30, 2018
Net revenues to unaffiliated customers	$	131,349	$	11,438	$	1,269	$	—		$	144,056
Inter-geographic revenues	1,647		358		—		(2,005		)	—
Net revenues	$	132,996	$	11,796	$	1,269	$	(2,005	)	$	144,056

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. As additional information related to the Company’s products by end user, application and/or product grouping is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application and/or product grouping for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each revenue category.

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



	First Quarters Ended
	September 27, 2019		September 30, 2018
Domestic⁽¹⁾	$	157,475	$	130,579
International/Foreign Military Sales⁽²⁾	19,829		13,477
Total Net Revenue	$	177,304	$	144,056

(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 presents the Company's net revenue by end application for the periods presented:



	First Quarters Ended
	September 27, 2019		September 30, 2018
Radar⁽¹⁾	$	37,919	$	40,979
Electronic Warfare⁽²⁾	36,057		24,054
Other Sensor & Effector⁽³⁾	27,890		13,658
Total Sensor & Effector	101,866		78,691
C4I⁽⁴⁾	49,011		44,224
Other⁽⁵⁾	26,427		21,141
Total Net Revenue	$	177,304	$	144,056

(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 presents the Company's net revenue by product grouping for the periods presented:



	First Quarters Ended
	September 27, 2019		September 30, 2018
Components⁽¹⁾	$	53,419	$	40,400
Modules and Sub-assemblies⁽²⁾	46,087		51,592
Integrated Subsystems⁽³⁾	77,798		52,064
Total Net Revenue	$	177,304	$	144,056

(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 sub-assemblies 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 identifiable long-lived assets is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations		Total
September 27, 2019	$	60,653	$	5,283	$	10	$	—	$	65,946
June 30, 2019	$	54,952	$	5,037	$	12	$	—	$	60,001

Identifiable long-lived assets exclude ROU assets, goodwill, and intangible assets.

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



	First Quarters Ended
	September 27, 2019		September 30, 2018
Lockheed Martin Corporation	18	%	*
Raytheon Company	13	%	19	%
Northrop Grumman Corporation	11	%	*
	42	%	19	%

* Indicates that the amount is less than 10% of the Company's revenue 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 revenue for the periods shown are as follows:

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

First Quarters Ended

September 27, 2019

September 30, 2018