Segment Reporting

6 Months Ended

Nov. 28, 2020

Segment Reporting [Abstract]

Segment Reporting

11.  SEGMENT REPORTING

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

PMT combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. 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 5G, 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-One computers, specialized cabinet finishes, 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, repairs, refurbishes and distributes high value replacement parts and equipment 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; pre-owned CT systems; 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 help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.

The CEO, who is the chief operating decision maker, 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				Six Months Ended
	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
PMT
Net Sales	$	32,929	$	29,603	$	63,181	$	60,170
Gross Profit		11,251		9,349		21,222		19,028
Canvys
Net Sales	$	6,701	$	7,856	$	13,413	$	15,133
Gross Profit		2,379		2,585		4,663		4,906
Healthcare
Net Sales	$	2,788	$	2,175	$	4,636	$	4,984
Gross Profit		713		746		817		1,697

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						Six Months Ended
	November 28, 2020			November 30, 2019			November 28, 2020			November 30, 2019
Net Sales
North America	$	17,730		$	15,306		$	33,859		$	32,540
Asia/Pacific		9,114			9,277			19,149			17,800
Europe		13,305			13,210			23,992			26,134
Latin America		2,218			1,859			4,145			3,837
Other (1)		51			(18	)		85			(24	)
Total	$	42,418		$	39,634		$	81,230		$	80,287
Gross Profit
North America	$	7,001		$	5,797		$	13,018		$	12,104
Asia/Pacific		2,997			3,056			6,075			5,649
Europe		4,441			4,015			7,797			8,146
Latin America		787			644			1,449			1,344
Other (1)		(883	)		(832	)		(1,637	)		(1,612	)
Total	$	14,343		$	12,680		$	26,702		$	25,631

(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.