Segment information

6 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Segment information

Note 7 - 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 currently has three segments - RF Connector and Cable Assembly, Cables Unlimited and Medical Cabling and Interconnector based upon this evaluation. During fiscal 2013, the Company disposed of its RF Wireless segment.

  The RF Connector and Cable Assembly segment is comprised of two divisions, whereas the Cables Unlimited segment and the Medical Cabling and Interconnector segment are each comprised of one division. The three divisions that meet the quantitative thresholds for segment reporting are Connector and Cable Assembly, Cables Unlimited and Bioconnect. The other division aggregated into the RF Connector and Cable Assembly segment has similar products that are marketed to their respective customer base and production and product development processes that 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 and Aviel divisions into the RF Connector and Cable Assembly segment, while the Cables Unlimited division constitutes the Cables Unlimited segment. The Bioconnect Division comprises the Medical Cabling and Interconnector 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. Effective beginning with the second quarter of fiscal 2013, the Company changed its measurement of segment profit or loss whereby certain corporate costs, previously attributed to the RF Connector and Cable Assembly segment, have been allocated to each of the segments. Certain amounts in the fiscal 2013 segment tables have been reclassified to conform to the fiscal 2014 presentation to reflect all segment information on a comparable basis. Additionally, with the sale and discontinuation of the RF Neulink and RadioMobile divisions during fiscal 2013, the segment information has been adjusted as these divisions are reflected within discontinued operations. Accounts receivable, inventory, property and equipment, 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 six months ended April 30, 2014 and 2013 (in thousands):

	Three Months Ended April 30,				Six Months Ended April 30,
	2014		2013		2014		2013
United States	$	5,314	$	8,517	$	10,762	$	17,952
Foreign Countries:
Canada		107		132		209		280
Israel		157		51		222		148
Mexico		136		87		258		278
All Other		50		60		163		84
		450		330		852		790
Totals	$	5,764	$	8,847	$	11,614	$	18,742

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the three months ended April 30, 2014 and 2013 are as follows (in thousands): 

	RF Connector				Medical
	and		Cables		Cabling and
	Cable Assembly		Unlimited		Interconnector		Corporate		Total
2014
Net sales	$	3,312	$	1,740	$	712	$	-	$	5,764
Income (loss) from continuing operations before provision for income taxes		590		(19)		193		6		770
Depreciation and amortization		47		91		7		-		145
2013
Net sales	$	3,567	$	4,450	$	830	$	-	$	8,847
Income from continuing operations before provision for income taxes		636		934		239		1		1,810
Depreciation and amortization		61		87		11		2		161

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the six months ended April 30, 2014 and 2013 are as follows (in thousands): 

	RF Connector				Medical
	and		Cables		Cabling and
	Cable Assembly		Unlimited		Interconnector		Corporate		Total
2014
Net sales	$	6,284	$	3,867	$	1,463	$	-	$	11,614
Income (loss) from continuing operations before provision for income taxes		958		(186)		333		11		1,116
Depreciation and amortization		96		183		15		-		294
2013
Net sales	$	7,384	$	9,842	$	1,516	$	-	$	18,742
Income from continuing operations before provision for income taxes		1,187		2,246		395		2		3,830
Depreciation and amortization		122		172		22		4		320