Segment Reporting

9 Months Ended

Feb. 26, 2022

Segment Reporting [Abstract]

Segment Reporting

7.  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 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, 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 believe we can help our customers improve efficiency 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				Nine Months Ended
	February 26, 2022		February 27, 2021		February 26, 2022		February 27, 2021
PMT
Net Sales	$	44,032	$	35,237	$	128,778	$	98,418
Gross Profit		14,163		12,308		41,080		33,530
Canvys
Net Sales		8,141		7,078		25,732		20,491
Gross Profit		2,618		2,493		8,348		7,156
Healthcare
Net Sales		3,135		2,920		8,481		7,556
Gross Profit		788		965		2,095		1,782

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
	February 26, 2022			February 27, 2021			February 26, 2022			February 27, 2021
Net Sales
North America	$	23,647		$	19,654		$	68,615		$	53,513
Asia/Pacific		13,275			9,821			38,220			28,970
Europe		16,067			13,285			48,231			37,277
Latin America		2,380			2,446			7,976			6,591
Other (1)		(61	)		29			(51	)		114
Total	$	55,308		$	45,235		$	162,991		$	126,465
Gross Profit
North America	$	8,946		$	8,081		$	24,984		$	21,099
Asia/Pacific		4,061			3,517			12,126			9,592
Europe		4,884			4,356			14,507			12,153
Latin America		917			896			2,998			2,345
Other (1)		(1,239	)		(1,084	)		(3,092	)		(2,721	)
Total	$	17,569		$	15,766		$	51,523		$	42,468

(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.