NOTE G – SEGMENT INFORMATION

The Company operates under two reportable segments based on the geographic locations of its subsidiaries:

(1)

FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets- communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations and other components and systems for the U.S. military.

(2)

FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications. This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the United States market.

The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiaries, FEI-Elcom and FEI-Asia. FEI-Asia functions as a manufacturing facility for the FEI-NY segment with historically minimal sales to outside customers. Beginning in late fiscal year 2014, FEI-Asia began shipping higher volumes of product to third parties as a contract manufacturer. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business.

The Company’s Chief Executive Officer measures segment performance based on total revenues and profits generated by each geographic location rather than on the specific types of customers or end-users. Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s management views the business.

The tables below present information about reported segments with reconciliation of segment amounts to consolidated amounts as reported in the statement of income or the balance sheet for each of the periods (in thousands):

	Six months						Three months
	Periods ended October 31,
	2017			2016			2017			2016
Revenues:
FEI-NY	$	15,740		$	17,715		$	6,579		$	7,733
FEI-Zyfer		7,865			6,596			3,593			4,249
less intersegment revenues		(2,245	)		(1,283	)		(835	)		(516	)
Consolidated revenues	$	21,360		$	23,028		$	9,337		$	11,466

Operating loss:
FEI-NY	$	(2,758	)	$	(1,887	)	$	(2,358	)	$	(1,714	)
FEI-Zyfer		1,275			463			584			648
Corporate		(203	)		(166	)		(92	)		(116	)
Consolidated operating loss	$	(1,686	)	$	(1,590	)	$	(1,866	)	$	(1,182	)

	October 31, 2017			April 30, 2017
Identifiable assets:
FEI-NY (approximately $1.6 million in China)	$	62,242		$	64,828
FEI-Zyfer		10,663			10,427
less intersegment balances		(12,797	)		(11,992	)
Corporate		52,594			50,056
Consolidated identifiable assets	$	112,702		$	113,319