Segment Reporting

3 Months Ended

Aug. 27, 2022

Segment Reporting [Abstract]

Segment Reporting

7.  SEGMENT REPORTING

In August 2022, the Company disclosed a change in its reporting structure as part of its focus on power management applications that support the green energy market globally. As a result, beginning in our first quarter of fiscal year 2023, the Company began reporting its financial performance based on four operating and reportable segments: Power and Microwave Technologies, Global Energy Solutions, Canvys and Healthcare. Commencing with the first quarter of fiscal 2023, we are reporting the results for our new GES segment. The GES segment has been carved out of our existing PMT segment as we increase our focus on power management applications supporting the global green energy market. For comparability purposes, the results for fiscal 2022 reflect the presentation of the new GES segment.

We have identified four reportable segments as follows:

Power and Microwave Technologies 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, 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.

Green Energy Solutions combines our key technology partners and engineered solutions capabilities to design and manufacture key products for the fast-growing energy storage market and power management applications. As a designer, manufacturer, technology partner and authorized distributor, GES’s strategy is to provide specialized technical expertise and engineered solutions using our core design 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. GES’s focus is on products for numerous green energy applications such as wind, solar, hydrogen and Electric Vehicles, and other power management applications that support green solutions such as synthetic diamond manufacturing.

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
	August 27, 2022		August 28, 2021
PMT
Net Sales	$	45,354	$	40,435
Gross Profit		15,535		12,187
GES
Net Sales		8,511		2,574
Gross Profit		3,022		744
Canvys
Net Sales		10,413		8,441
Gross Profit		3,266		2,818
Healthcare
Net Sales		3,279		2,254
Gross Profit		1,204		548

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 27, 2022			August 28, 2021
Net Sales
North America	$	31,828		$	20,528
Asia/Pacific		17,554			13,246
Europe		15,356			17,050
Latin America		2,845			2,875
Other (1)		(26	)		5
Total	$	67,557		$	53,704
Gross Profit
North America	$	13,279		$	7,380
Asia/Pacific		5,530			4,146
Europe		4,342			4,789
Latin America		1,019			1,081
Other (1)		(1,143	)		(1,099	)
Total	$	23,027		$	16,297

(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.