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Segment Reporting
9 Months Ended
Mar. 02, 2019
Segment Reporting [Abstract]  
Segment Reporting

11.  SEGMENT REPORTING

In accordance with ASC 280-10, Segment Reporting, we have identified three operating and reportable segments as follows:

Power and Microwave Technologies Group (“PMT”) combines our core engineered solutions, power grid and microwave tube business with new RF and power technologies. As a manufacturer and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT 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. PMT also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, all-in-ones, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms.

Healthcare manufactures, refurbishes and distributes high value replacement parts for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include Diagnostic Imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.

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, 2019

 

 

March 3, 2018

 

 

March 2, 2019

 

 

March 3, 2018

 

PMT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

29,725

 

 

$

31,869

 

 

$

96,822

 

 

$

91,056

 

Gross Profit

 

 

9,406

 

 

 

10,656

 

 

 

30,520

 

 

 

30,492

 

Canvys

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

6,954

 

 

$

7,585

 

 

$

20,625

 

 

$

20,057

 

Gross Profit

 

 

2,281

 

 

 

2,571

 

 

 

6,726

 

 

 

6,245

 

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

2,339

 

 

$

2,191

 

 

$

7,042

 

 

$

6,609

 

Gross Profit

 

 

612

 

 

 

840

 

 

 

1,977

 

 

 

2,852

 

 

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, 2019

 

 

March 3, 2018

 

 

March 2, 2019

 

 

March 3, 2018

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

14,665

 

 

$

18,748

 

 

$

48,513

 

 

$

49,657

 

Asia/Pacific

 

 

8,007

 

 

 

6,635

 

 

 

26,069

 

 

 

21,102

 

Europe

 

 

13,612

 

 

 

14,197

 

 

 

41,761

 

 

 

40,312

 

Latin America

 

 

2,702

 

 

 

2,086

 

 

 

8,075

 

 

 

6,646

 

Other (1)

 

 

32

 

 

 

(21

)

 

 

71

 

 

 

5

 

Total

 

$

39,018

 

 

$

41,645

 

 

$

124,489

 

 

$

117,722

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

5,577

 

 

$

6,955

 

 

$

18,682

 

 

$

18,747

 

Asia/Pacific

 

 

2,482

 

 

 

2,331

 

 

 

8,188

 

 

 

7,256

 

Europe

 

 

4,403

 

 

 

4,904

 

 

 

13,141

 

 

 

13,493

 

Latin America

 

 

990

 

 

 

820

 

 

 

3,011

 

 

 

2,638

 

Other (1)

 

 

(1,153

)

 

 

(943

)

 

 

(3,799

)

 

 

(2,545

)

Total

 

$

12,299

 

 

$

14,067

 

 

$

39,223

 

 

$

39,589

 

 

(1)

Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses.

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.