SEGMENT REPORTING

3 Months Ended

Aug. 31, 2013

SEGMENT REPORTING

SEGMENT REPORTING    

In accordance with ASC 280-10, Segment Reporting, we have identified two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvysprovides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and OEM markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended
	August 31,   2013		September 1,   2012
EDG
Net Sales	$	25,479	$	25,627
Gross Profit	7,859		8,000
Canvys
Net Sales	$	8,778	$	10,023
Gross Profit	2,333		2,646

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.    

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended
	August 31,   2013			September 1,   2012
Net Sales
North America	$	14,109		$	15,738
Asia/Pacific	6,305			6,347
Europe	11,489			10,744
Latin America	2,197			2,447
Other	157			374
Total	$	34,257		$	35,650
Gross Profit (loss)
North America	$	4,935		$	5,288
Asia/Pacific	1,943			2,193
Europe	3,595			3,226
Latin America	822			828
Other	(1,103		)	(889		)
Total	$	10,192		$	10,646

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.