Segment information

12 Months Ended

Oct. 31, 2015

Segment Reporting [Abstract]

Segment information

Note 7 - Segment information

The Company aggregates operating divisions into operating segments which have similar economic characteristics primarily in 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, Custom Cabling Manufacturing and Assembly and Medical Cabling and Interconnector based upon this evaluation.

The RF Connector and Cable Assembly segment is comprised of two divisions, the Custom Cabling Manufacturing and Assembly segment comprised of three divisions and the Medical Cabling and Interconnector segment comprised of one division. The three divisions that meet the quantitative thresholds for segment reporting are Connector and Cable Assembly, Custom Cabling Manufacturing and Assembly and Bioconnect. The other division aggregated into the RF Connector and Cable Assembly segment and into the Custom Cabling Manufacturing and Assembly segment have 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, the Cables Unlimited, Comnet and Rel-Tech division constitutes the Custom Cabling Manufacturing and 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. 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 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 years ended October 31, 2015 and 2014 (in thousands):

	2015		2014
United States	$	31,628	$	21,452
Foreign Countries:
Canada		362		531
Israel		296		321
Mexico		395		527
All Other		123		284
		1,176		1,663
Totals	$	32,804	$	23,115

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the years ended October 31, 2015 and 2014 are as follows (in thousands): 

	RF Connector		Custom Cabling		Medical
	and		Manufacturing and		Cabling and
	Cable Assembly		Assembly		Interconnector		Corporate		Total
2015
Net sales	$	11,710	$	19,198	$	1,896	$	-	$	32,804
Income (loss) from continuing operations before provision for income taxes		887		(234)		243		357		1,253
Depreciation and amortization		181		795		20		-		996
Total assets		6,890		16,150		358		8,854		32,252
2014
Net sales	$	13,156	$	7,247	$	2,712	$	-	$	23,115
Income (loss) from continuing operations before provision for income taxes		2,161		(478)		588		24		2,295
Depreciation and amortization		186		380		26		-		592
Total assets		5,818		6,804		567		15,840		29,029