Segment information

6 Months Ended

Apr. 30, 2019

Note 10 - Segment information

The Company aggregates operating divisions into operating segments that 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. Based upon this evaluation, as of April 30, 2019, the Company had two segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).

As of April 30, 2019, the RF Connector segment consisted of one division and the Custom Cabling segment was composed of three divisions. The four divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, and C Enterprises. While each segment had similar products and services, with one major exception, there was little overlapping of these services to their customer base. In addition, sales or product and services for the RF Connector segment were primarily through the distribution channel while the Custom Cabling segment sales were through a combination of distribution and direct to the end customer.

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 division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, and C Enterprises divisions constitute the Custom Cabling 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 three and six months ended April 30, 2019 and 2018 (in thousands):

	Three Months Ended April 30,				Six Months Ended April 30,
	2019		2018		2019		2018

United States	$	13,451	$	20,376	$	23,921	$	28,137
Foreign Countries:
Canada		113		125		278		280
Mexico		-		-		-		39
All Other		62		14		74		26
		175		139		352		345

Totals	$	13,626	$	20,515	$	24,273	$	28,482

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the three months ended April 30, 2019 and 2018 are as follows (in thousands):

	RF Connector			Custom Cabling
	and			Manufacturing and
	Cable Assembly			Assembly		Corporate		Total
2019
Net sales	$	3,341		$	10,285	$	-	$	13,626
Income from continuing operations before provision for income taxes		257			1,105		14		1,376
Depreciation and amortization		45			96		-		141
Total assets		6,972			12,773		14,660		34,405

2018
Net sales	$	2,734		$	17,781	$	-	$	20,515
Income (loss) from continuing operations before provision for income taxes		(482	)		4,443		3		3,964
Depreciation and amortization		43			84		-		127
Total assets		6,368			15,077		14,298		35,743

Net sales, income (loss) from continuing operations before provision for income taxes and other related segment information for the six months ended April 30, 2019 and 2018 are as follows (in thousands):

	RF Connector			Custom Cabling
	and			Manufacturing and
	Cable Assembly			Assembly		Corporate		Total
2019
Net sales	$	6,599		$	17,674	$	-	$	24,273
Income from continuing operations before provision for income taxes		537			1,611		36		2,184
Depreciation and amortization		90			188		-		278
Total assets		6,972			12,773		14,660		34,405

2018
Net sales	$	5,364		$	23,118	$	-	$	28,482
Income (loss) from continuing operations before provision for income taxes		(639	)		4,957		6		4,324
Depreciation and amortization		87			167		-		254
Total assets		6,368			15,077		14,298		35,743