SEGMENT REPORTING

9 Months Ended

Mar. 02, 2013

SEGMENT REPORTING

12. SEGMENT REPORTING

In accordance with ASC 280-10, Segment Reporting, we have 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.

Canvys provides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer (“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				Nine Months Ended
	March 2,		March 3,		March 2,		March 3,
	2013		2012		2013		2012
EDG
Net Sales	$	24,333	$	26,867	$	76,146	$	85,618
Gross Profit	$	7,407	$	8,085	$	23,337	$	26,302
Canvys
Net Sales	$	9,297	$	11,463	$	29,737	$	33,361
Gross Profit	$	2,503	$	3,212	$	7,961	$	9,387

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						Nine Months Ended
	March 2			March 3,			March 2		March 3,
	2013			2012			2013		2012
Net Sales
North America	$	15,531		$	17,055		$	47,733	$	50,662
Asia/Pacific		4,878			5,852			16,651		19,904
Europe		11,010			12,682			34,190		39,469
Latin America		2,210			2,444			6,976		7,557
Other		—			297			333		1,387
Total	$	33,630		$	38,330		$	105,883	$	118,979
Gross Profit
North America	$	4,398		$	5,577		$	14,071	$	16,288
Asia/Pacific		1,642			2,151			5,338		7,088
Europe		3,143			4,003			9,651		12,528
Latin America		731			992			2,225		2,909
Other		(4	)		(1,426	)		14		(3,124	)
Total	$	9,910		$	11,297		$	31,298	$	35,689

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.