Note 7 - Segment Information

12 Months Ended

Oct. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 7 – Segment information

We aggregate 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. Based upon this evaluation, as of October 31, 2021, we had two reportable segments – RF Connector and Cable Assembly (“RF Connector”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling”).

During fiscal 2021, the RF Connector segment was comprised of one division, while the Custom Cabling segment was comprised of four divisions. The five divisions that met the quantitative thresholds for segment reporting were RF Connector and Cable Assembly 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, 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.

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 years ended October 31, 2021 and 2020 (in thousands):

	2021		2020
United States	$	54,960	$	41,633
Foreign Countries:
Canada		1,856		933
Mexico		130		12
All Other		478		466
		2,464		1,411
Totals	$	57,424	$	43,044

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the years ended October 31, 2021 and 2020 are as follows (in thousands): 

	RF Connector		Custom Cabling
	and		Manufacturing and
	Cable Assembly		Assembly			Corporate			Total			Check
2021
Net sales	$	15,622	$	41,802		$	-		$	57,424		$	57,424
Income (loss) before benefit for income taxes		2,494		1,921			2,802	*		7,217			7,217
Depreciation and amortization		141		629			-			770			770
Total assets		7,367		25,875			16,406			49,648			49,648
2020
Net sales	$	14,554	$	28,490		$	-		$	43,044		$	43,044
Income before provision for income taxes		2,019		(2,423	)		(44	)		(448	)		(448	)
Depreciation and amortization		159		855			-			1,014			1,014
Total assets		7,822		15,486			17,514			40,822			40,822

* For the 12 months ended October 31, 2021, other income consists of the $2.8M PPP loans that were forgiven.