Segment information

12 Months Ended

Oct. 31, 2016

Segment Reporting [Abstract]

Segment information

Note 8 - 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; and (5) if applicable, the nature of the regulatory environment. As of October 31, 2016, the Company had two segments - RF Connector and Cable Assembly and Custom Cabling Manufacturing based upon this evaluation.

The RF Connector and Cable Assembly segment is comprised of one division, while the Custom Cabling Manufacturing and Assembly segment comprised of three divisions. The four divisions that met the quantitative thresholds for segment reporting are Connector and Cable Assembly, Cables Unlimited, Comnet and Rel-Tech. 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 Connector and Cable Assembly division constitutes the RF Connector and Cable Assembly segment , the Cables Unlimited, Comnet and Rel-Tech division constitutes the Custom Cabling Manufacturing and 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, 2016 and 2015 (in thousands):

	2016		2015
United States	$	29,257	$	29,732
Foreign Countries:
Canada		509		362
Israel		63		296
Mexico		234		395
All Other		178		123
		984		1,176
Totals	$	30,241	$	30,908

Net sales, income (loss) from continuing operations before provision (benefit) for income taxes and other related segment information for the years ended October 31, 2016 and 2015 are as follows (in thousands): 

	RF Connector		Custom Cabling
	and		Manufacturing and
	Cable Assembly		Assembly		Corporate		Total
2016
Net sales	$	9,352	$	20,889	$	-	$	30,241
Loss from continuing operations before provision (benefit) for income taxes		(1,358)		(3,232)		(93)		(4,683)
Depreciation and amortization		194		842		-		1,036
Total assets		5,902		13,100		6,835		25,837
2015
Net sales	$	11,710	$	19,198	$	-	$	30,908
Income (loss) from continuing operations before provision (benefit) for income taxes		711		(234)		357		834
Depreciation and amortization		201		795		-		996
Total assets		7,248		16,150		8,854		32,252