Note 9 - Segment Information

6 Months Ended

Apr. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

9

–

Segment i

nformation

We aggregate operating divisions into

two

reporting 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, 2020,

we had

two

segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).

The RF Connector segment consisted of

one

division and the Custom Cabling segment was composed of

four

divisions. The

five

divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. While each segment has similar products and services, there was little overlapping of these services to their customer base. The biggest difference in segments is in the channels of sales: 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 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, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment.

As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, 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 our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the

three

and

six

months ended

April 30, 2020

and

2019

(in thousands):

	Three Months Ended April 30,				Six Months Ended April 30,
	2020		2019		2020		2019
United States	$	9,982	$	13,451	$	22,155	$	23,921
Foreign Countries:
Canada		290		113		407		278
Mexico		7		-		12		-
All Other		111		62		230		74
		408		175		649		352
Totals	$	10,390	$	13,626	$	22,804	$	24,273

Net sales, income (loss) before provision for income taxes and other related segment information for the

three

months ended

April 30, 2020

and

2019

are as follows (in thousands): 

	RF Connector and Cable Assembly		Custom Cabling Manufacturing and Assembly			Corporate		Total
2020
Net sales	$	3,768	$	6,622		$	-	$	10,390
Income (loss) before provision for income taxes		697		(885	)		7		(181	)
Depreciation and amortization		41		212			-		253
Total assets		8,126		16,021			15,265		39,412
2019
Net sales	$	3,341	$	10,285		$	-	$	13,626
Income 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

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the

six

months ended

April 30, 2020

and

2019

are as follows (in thousands):

	RF Connector and Cable Assembly		Custom Cabling Manufacturing and Assembly			Corporate		Total
2020
Net sales	$	6,957	$	15,847		$	-	$	22,804
Income (loss) before benefit for income taxes		979		(1,166	)		18		(169	)
Depreciation and amortization		83		425			-		508
Total assets		8,126		16,021			15,265		39,412
2019
Net sales	$	6,599	$	17,674		$	-	$	24,273
Income 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