Segment Information

3 Months Ended

Jan. 31, 2012

Segment Information

Note 8 - Segment Information

The Company aggregates operating divisions into operating segments which have similar economic characteristics and divisions 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; (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 Cables Unlimited segment and the Medical Cabling and Interconnector segment are each comprised of one division, while the RF Wireless segment is comprised of two divisions.  The four divisions that meet the quantitative thresholds for segment reporting are Connector & Cable Assembly, Cables Unlimited, Bioconnect and RF Wireless. 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 & Cable Assembly, Aviel, and Oddcables.com divisions into the RF Connector and Cable Assembly segment, while the Cables Unlimited division constitutes the Cables Unlimited segment. The Bioconnect Division makes up the Medical Cabling and Interconnector segment, and the RF Neulink and RadioMobile divisions make up the RF Wireless 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 month periods ended January 31, 2012 and 2011:

	Three Months Ended January 31
	2012		2011
United States	$	5,189,872	$	3,524,925
Foreign countries:
Canada		141,670		340,545
Israel		98,073		113,121
Mexico		95,199		113,214
All other		33,940		48,490
Totals	$	5,558,754	$	4,140,295

Net sales, income (loss) before provision for income taxes and other related segment information for the three months ended January 31, 2012 and 2011 are as follows:

2012	RF Connectors and Cable Assembly		Cables Unlimited		Medical Cabling and Interconnector		RF Wireless			Corporate		Total
Net sales	$	3,104,399	$	1,443,716	$	673,761	$	336,878		$	-	$	5,558,754
Income (loss) before provision for         income taxes		103,856		36,757		182,264		(108,495	)		5,080		219,462
Depreciation and amortization		47,289		101,683		10,508		2,141					161,621
2011
Net sales	$	3,406,946	$	-	$	608,212	$	125,137		$	-	$	4,140,295
Income (loss) before provision for         income taxes		625,967		-		133,887		(231,415	)		10,485		538,924
Depreciation and amortization		42,743		-		6,749		464			-		49,956