Segment Information

12 Months Ended

Apr. 30, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

13. 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, 2023 and 2022, 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 fiscal years (in thousands):

	For the Fiscal Years Ended April 30,
	2023			2022
Revenues:
FEI-NY	$	32,314		$	41,157
FEI-Zyfer		9,932			7,827
less intersegment revenues		(1,469	)		(688	)
Consolidated revenues	$	40,777		$	48,296

Operating loss:
FEI-NY	$	(4,234	)	$	(5,679	)
FEI-Zyfer		(160	)		(2,104	)
less intersegment revenues		68			79
Corporate		(346	)		(334	)
Consolidated operating loss	$	(4,672	)	$	(8,038	)

	For the Fiscal Years Ended April 30,
	2023			2022
Identifiable assets:
FEI-NY	$	39,005		$	40,888
FEI-Zyfer		10,699			10,522
less intersegment balances		(58	)		(126	)
Corporate		24,850			33,476
Consolidated identifiable assets	$	74,496		$	84,760

Depreciation and amortization (allocated):
FEI-NY	$	2,229	$	2,798
FEI-Zyfer		205		227
Corporate		-		-
Consolidated depreciation and amortization expense	$	2,434	$	3,025

Major Customers

The Company’s products are sold to both commercial and governmental customers. For the fiscal years ended April 30, 2023 and 2022, approximately 95% and 94%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.

In the fiscal year ended April 30, 2023, revenues from four customers, of the FEI-NY segment which each accounted for more than 10% of that segment’s revenues, were $7.3 million, $5.8 million, $5.1 million, and $4.0 million. In the fiscal year ended April 30, 2022, revenues from four customers, of the FEI-NY segment which each accounted for more than 10% of that segment’s revenues, were $12.6 million, $6.1 million, $5.0 million, and $4.4 million. In the FEI-Zyfer segment two customers, which each accounted for more than 10% of that segment’s revenues, were $4.0 million and $1.5 million in the fiscal year ended April 30, 2023. In the fiscal year ended April 30, 2022, revenues from two customers, of the FEI-Zyfer segment which each accounted for more than 10% of that segment’s revenues, were $1.3 million and $1.0 million.

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 fiscal years ended April 30, 2023 and 2022, revenues, based on the location of the procurement entity were derived from the following countries (in thousands):

	For the Fiscal Years Ended April 30,
	2023		2022
Domestic	$	39,564	$	47,415
Foreign		1,213		881
	$	40,777	$	48,296

As of April 30, 2023 and 2022, there were no material foreign sales to one specific foreign country.