Note 9 - Segment Information

6 Months Ended

Apr. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 9 – Segment information

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; and (5) if applicable, the nature of the regulatory environment. Based upon this evaluation, as of April 30, 2022, we had two segments – the RF Connector segment and the Custom Cabling Manufacturing and Assembly (“Custom Cabling”) segment.

The RF Connector segment consisted of two divisions and the Custom Cabling segment was composed of four divisions. The six 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, Schrofftech, and Microlab. 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 and Microlab divisions 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.

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, 2022 and 2021 (in thousands):

	Three Months Ended April 30,				Six Months Ended April 30,
	2022		2021		2022		2021
United States	$	19,950	$	10,338	$	36,366	$	19,717
Foreign Countries:
Canada		663		566		961		1,091
Mexico		53		26		78		26
All Other		839		127		1,018		225
		1,555		719		2,057		1,342
Totals	$	21,505	$	11,057	$	38,423	$	21,059

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended April 30, 2022 and 2021 were as follows (in thousands): 

	RF Connector		Custom Cabling
	and		Manufacturing and
2022	Cable Assembly		Assembly		Corporate			Total
Net sales	$	7,510	$	13,995	$	-		$	21,505
Income (loss) before provision for income taxes		577		807		(745	)		639
Depreciation and amortization		293		145		-			438
Total assets		34,398		26,812		8,437			69,647
2021
Net sales	$	3,552	$	7,505	$	-		$	11,057
Income (loss) before provision for income taxes		1,495		1,189		2,809			5,493
Depreciation and amortization		35		142		-			177
Total assets		7,463		16,835		18,469			42,767

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the six months ended April 30, 2022 and 2021 were as follows (in thousands): 

	RF Connector		Custom Cabling
	and		Manufacturing and
2022	Cable Assembly		Assembly		Corporate			Total
Net sales	$	11,433	$	26,990	$	-		$	38,423
Income (loss) before benefit from income taxes		633		1,121		(1,472	)		282
Depreciation and amortization		330		288		-			618
Total assets		34,398		26,812		8,437			69,647
2021
Net sales	$	7,127	$	13,932	$	-		$	21,059
Income (loss) before benefit from income taxes		1,947		148		2,801			4,896
Depreciation and amortization		70		344		-			414
Total assets		7,463		16,835		18,469			42,767