Segment Information

9 Months Ended

Jul. 31, 2011

Segment Information

Note 9 - Segment Information

The Company aggregates operating divisions into operating segments which have similar economic characteristics and are similar in the majority of the following areas: (1) the nature of the product and services; (2) the nature of the production process; (3) the type or class of customer for their products and services; (4) the methods used to distribute their products or services; and (5) if applicable, the nature of the regulatory environment. The Company has four segments - RF Connector and Cable Assembly, Medical Cabling and Interconnector, RF Wireless, and Cables Unlimited based upon this evaluation.

The RF Connector and Cable Assembly segment is comprised of three divisions, the Medical Cabling and Interconnector is comprised of one division while the RF Wireless segment is comprised of two. The four divisions that meet the quantitative thresholds for segment reporting are Connector and Cable Assembly, Bioconnect, RF Neulink, and Cables Unlimited. Each of the other divisions aggregated into these segments have similar products that are marketed to their respective customer base; production and product development processes are similar in nature. The specific customers are different for each division; however, there is some overlapping of product sales to them. The methods used to distribute products are similar within each division aggregated.

Management identifies the Company’s segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the Company aggregates the Connector and Cable Assembly, Aviel Electronics, and Oddcables.com (formerly known as Worswick) divisions into the RF Connector and Cable Assembly segment while RF Neulink and RadioMobile are part of the RF Wireless segment. The Bioconnect division makes up the Company’s Medical Cabling and Interconnector segment, and the Cables Unlimited subsidiary makes up the Cables Unlimited segment.

As reviewed by the Company’s chief operating decision maker, the Company evaluates the performance of each segment based on income or loss before income taxes. The Company charges depreciation and amortization directly to each division within the segment. All stock based compensation is attributed to the RF Connector and Cable Assembly segment. Inventory, fixed assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

Substantially all of the Company’s operations are conducted in the United States; however, the Company derives a portion of its revenue from export sales. The Company attributes sales to geographic areas based on the location of the customers. The following table presents the sales of the Company by geographic area for the three and nine month periods ended July 31, 2011 and 2010:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2011		2010		2011		2010
United States	$	4,594,086	$	3,654,004	$	12,300,852	$	9,767,347
Foreign countries:
Canada		124,030		147,320		543,131		482,110
Israel		59,504		289,061		173,295		637,076
Mexico		96,874		98,250		304,453		294,717
All other		73,259		41,397		157,879		139,812
	$	4,947,753	$	4,230,032	$	13,479,610	$	11,321,062

Net sales, income (loss) before provision for income taxes and other related segment information for the three months ended July 31, 2011 and 2010 are as follows:

2011	RF Connectors and Cable Assembly			Cables Unlimited		Medical Cabling and Interconnector		RF Wireless			Corporate		Total
Net sales	$	3,273,835		$	909,277	$	510,001	$	254,640				$	4,947,753
Income (loss) before provision for income taxes		(98,849	)		88,137		120,609		(118,407	)		10,132		1,622
Depreciation and amortization		44,703			73,596		8,251		464					127,014
2010
Net sales	$	3,546,233		$	-	$	563,419	$	120,380				$	4,230,032
Income (loss) before provision for income taxes		682,620			-		153,104		(392,190	)	$	28,062		471,596
Depreciation, amortization and impairment		179,687			-		6,881		5,505					192,073

Net sales, income (loss) before provision for income taxes and other related segment information for the nine months ended July 31, 2011 and 2010 are as follows:

2011	RF Connectors and Cable Assembly		Cables Unlimited		Medical Cabling and Interconnector		RF Wireless			Corporate		Total
Net sales	$	10,144,053	$	909,277	$	1,808,871	$	617,409				$	13,479,610
Income (loss) before provision for income taxes		1,135,973		88,137		426,509		(508,961	)		31,378		1,173,036
Depreciation and amortization		131,993		73,596		22,303		1,216					229,108
2010
Net sales	$	9,719,162	$	-	$	1,346,225	$	255,675				$	11,321,062
Income (loss) before provision for income taxes		1,699,925		-		296,544		(755,689	)	$	67,856		1,308,636
Depreciation, amortization and impairment		259,523		-		16,566		19,643					295,732