SEGMENT INFORMATION

9 Months Ended

Nov. 30, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15 - SEGMENT INFORMATION

Segment information for the three and nine months ended November 30, 2016 and 2015 is as follows (dollars in thousands):

	Three Months Ended November 30, 2016											Three Months Ended November 30, 2015
	Operating Segments											Operating Segments
	Wire less					Corporate						Wireless						Corporate
	DataCom			Satellite		Expenses			Total			DataCom			Satellite			Expenses			Total
Revenues	$	83,350		$	-				$	83,350		$	62,842		$	11,833					$	74,675
Gross profit	$	35,117		$	-				$	35,117		$	23,416		$	3,158					$	26,574
Gross margin		42.1	%							42.1	%		37.3	%		26.7	%					35.6	%
Operating income	$	3,171		$	-	$	(1,378	)	$	1,793		$	7,389		$	2,415		$	(1,191	)	$	8,613

	Nine Months Ended November 30, 2016												Nine Months Ended November 30, 2015
	Operating Segments												Operating Segments
	Wireless						Corporate						Wireless						Corporate
	DataCom			Satellite			Expenses			Total			DataCom			Satellite			Expenses			Total
Revenues	$	249,907		$	15,069					$	264,976		$	182,487		$	27,425					$	209,912
Gross profit	$	103,836		$	3,729					$	107,565		$	68,102		$	7,301					$	75,403
Gross margin		41.5	%		24.7	%					40.6	%		37.3	%		26.6	%					35.9	%
Operating income	$	9,243		$	1,547		$	(7,129	)	$	3,661		$	21,808		$	5,192		$	(3,445	)	$	23,555

The Company considers operating income to be a primary measure of operating performance of its business segments. The amount shown for each period in the “Corporate Expenses” column above consists of expenses that are not allocated to the business segments. These non-allocated corporate expenses include salaries and benefits of certain corporate staff and expenses such as audit fees, investor relations, stock listing fees, director and officer liability insurance, and director fees and expenses.

Products of the Company's Satellite segment were sold to EchoStar. In August 2016, EchoStar ceased purchasing products from CalAmp and the Satellite business was shut down effective August 31, 2016. Historically, shared service expenses for accounting, human resources, information technology and legal administration have been allocated to the two reporting segments. Any such shared expenses that will not be eliminated in future periods as a result of the shutdown of the Satellite business have been reclassified in the segment information for all periods presented above from the Satellite segment to the Wireless DataCom segment, with no effect on total operating income.

In fiscal 2016 and the fiscal 2017 nine month period to November 30, 2016, Satellite segment revenues accounted for only 14% and 6%, respectively, of the Company’s consolidated revenues. After giving retroactive effect to the reclassification of general and administration expense from the Satellite segment to the Wireless DataCom segment for shared service expenses that will not be eliminated as a result of the Satellite business shutdown, Satellite segment operating income in fiscal 2016 and the fiscal 2017 nine month period represented 23% and 14%, respectively, of total business unit operating income, excluding corporate expenses not allocated to the business units of $6,480,000 and $7,129,000 in fiscal 2016 and the fiscal 2017 nine month period, respectively. Also, as a result of transitioning the Satellite business to a variable cost operating model in fiscal 2012, in which all Satellite product manufacturing was moved to a contract manufacturer, assets and liabilities of the Satellite segment represented only about 2% of consolidated assets and liabilities at the end of fiscal 2016. Accordingly, the Company believes that the shutdown of the Satellite segment does not qualify for discontinued operations accounting treatment because it represents neither a strategic shift nor did it have or will it have a major impact on the Company’s business or consolidated financial statements.