Segment Information

12 Months Ended

Apr. 30, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14.  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.   The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business.

(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 U.S. market.

The Company 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 accounting policies of the two segments are the same as those described in Note 1.  The Company evaluates the performance of its segments and allocates resources to them based on operating profit which is defined as income before investment income, interest expense and taxes.  All acquired assets, including intangible assets, are included in the assets of both reporting segments.

The table below presents information about reported segments for each of the years ended April 30, 2020 and 2019, respectively, with reconciliation of segment amounts to consolidated amounts as reported in the consolidated statements of operations or the consolidated balance sheets for each of the years (in thousands):

	2020			2019
Net revenues:
FEI-NY	$	31,751		$	38,096
FEI-Zyfer		10,914			12,235
Less intersegment revenues		(1,158	)		(822	)
Consolidated revenues	$	41,507		$	49,509

Operating loss:
FEI-NY	$	(9,910	)	$	(4,429	)
FEI-Zyfer		(673	)		1,730
Corporate		(339	)		(118	)
Consolidated operating loss	$	(10,922	)	$	(2,817	)

	2020			2019
Identifiable assets:
FEI-NY (approximately $1.5 in China in 2019)	$	44,599		$	54,295
FEI-Zyfer		13,344			10,478
less intersegment receivables		(8,586	)		(8,346	)
Corporate		41,919			30,344
Consolidated identifiable assets	$	91,276		$	86,771

Depreciation and amortization (allocated):
FEI-NY	$	3,192	$	2,695
FEI-Zyfer		112		92
Corporate		15		15
Consolidated depreciation and amortization expense	$	3,319	$	2,802

Major Customers

The Company’s products are sold to both commercial and governmental customers.  For the years ended April 30, 2020 and 2019, approximately 83% and 87%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.

In Fiscal 2020 and 2019, revenues to four and two customers, respectively, of the FEI-NY segment accounted for more than 10% of that segment’s revenues. These customers also exceeded 10% of the Company’s consolidated revenues each year. In the FEI-Zyfer segment, two customers accounted for more than 10% of that segment’s revenues in Fiscal 2020.

The loss by the Company of any one of these customers would have a material adverse effect on the Company’s business.  The Company believes its relationship with these customers is mutually satisfactory.  Sales to the major customers referenced above can include commercial and governmental end users.

Foreign Sales

Revenues in each of the Company’s segments include sales to foreign governments or to companies located in foreign countries.  For the years ended April 30, 2020 and 2019, revenues, based on the location of the procurement entity and excluding intersegment sales, were derived from the following countries (in thousands):

	2020		2019
Belgium	$	22	$	49
France		-		40
China		713		359
Russia		85		2
Germany		13		36
Italy		169		159
Israel		240		-
Singapore		82		215
Other		441		501
	$	1,765	$	1,361