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; and (5) if applicable, the nature of the regulatory environment. As of October 31, 2017, 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 RF Connector and Cable Assembly division constitutes the RF Connector and Cable Assembly segment

, and

the Cables Unlimited, Comnet and Rel-Tech division

constitute

the Custom Cabling Manufacturing 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, 2017 and 2016 (in thousands):

	2017		2016

United States	$	30,232	$	29,257
Foreign Countries:
Canada		483		509
Israel		-		63
Mexico		78		234
All Other		171		178
		732		984

Totals	$	30,964	$	30,241

Net sales, income (loss) from continuing operations before provision (benefit) for income taxes and other related segment information for the years ended October 31, 2017 and 2016 are as follows (in thousands):

	RF Connector		Custom Cabling
	and		Manufacturing and
	Cable Assembly		Assembly		Corporate		Total
2017
Net sales	$	11,456	$	19,508	$	-	$	30,964
Income (loss) from continuing operations before provision (benefit) for income taxes		382		(11)		29		400
Depreciation and amortization		177		700		-		877
Total assets		6,297		11,910		6,853		25,060

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