Segment Data and Related Information

6 Months Ended

Mar. 31, 2021

The reportable segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. The Company has determined that it has two reportable segments: (i) Aerospace and Defense and (ii) Broadband.

The Company’s Chief Executive Officer is the chief operating decision maker and he assesses the performance of the operating segments and allocates resources based on segment profits. We do not allocate sales and marketing, general and administrative expenses, or interest expense and interest income to our segments, because management does not include the information in its measurement of the performance of the operating segments. Also, a measure of segment assets and liabilities, has not been provided to the Company's chief operating decision maker and therefore is not shown below.

The Aerospace and Defense segment is comprised of two product lines: (a) Navigation and Inertial Sensing; and (b) Defense Optoelectronics. The Broadband segment is comprised of three product lines: (a) CATV Lasers and Transmitters; (b) Chip Devices; and (c) Other. Information on reportable segments utilized by our chief operating decision maker is as follows:


(in thousands)	For the three months ended March 31,				For the six months ended March 31,
	2021		2020		2021		2020
Revenue:
Aerospace and Defense	$	13,134	$	13,013	$	26,770	$	26,717
Broadband	25,272		10,837		45,062		22,615
Total revenue	$	38,406	$	23,850	$	71,832	$	49,332

Segment Profit:
Aerospace and Defense gross profit	$	3,775	$	2,844	$	7,875	$	7,332
Aerospace & Defense R&D expense	3,157		3,991		6,843		7,942
Aerospace and Defense segment profit	$	618	$	(1,147)	$	1,032	$	(610)

Broadband gross profit	$	10,859	$	3,583	$	19,331	$	6,569
Broadband R&D expense	614		593		1,224		1,284
Broadband segment profit	$	10,245	$	2,990	$	18,107	$	5,285

Total consolidated segment profit	$	10,863	$	1,843	$	19,139	$	4,675
Unallocated expense:
Selling, general and administrative	6,062		7,139		11,860		13,026
Loss (gain) on sale of assets	218		(315)		189		(1,917)
Interest expense (income), net	49		(1)		98		14
Foreign exchange loss (gain)	68		156		(169)		9
Total unallocated expense	6,397		6,979		11,978		11,132
Income (loss) before income tax expense (benefit)	$	4,466	$	(5,136)	$	7,161	$	(6,457)

Revenue: The following table sets forth revenue by geographic region with revenue assigned to geographic regions based on our customers’ billing address.


Revenue by Geographic Region	For the three months ended March 31,				For the six months ended March 31,
(in thousands)	2021		2020		2021		2020
United States and Canada	$	33,106	$	19,887	$	62,452	$	40,082
Asia	4,145		1,692		7,170		3,958
Europe	558		1,516		1,214		3,405
Other	597		755		996		1,887
Total revenue	$	38,406	$	23,850	$	71,832	$	49,332

Significant Customers: Significant customers are defined as customers representing greater than 10% of our consolidated revenue.

Revenue from three of our significant customers represented an aggregate of 68% and 56% of our consolidated revenue for the three months ended March 31, 2021 and 2020, respectively. The increase in percentage from significant customers was driven by the increase in Broadband revenue.

Revenue from three of our significant customers represented an aggregate of 69% and 53% of our consolidated revenue for the six months ended March 31, 2021 and 2020, respectively. The increase in percentage from significant customers was driven by the increase in Broadband revenue.

Significant portions of the Company’s sales are concentrated among a limited number of customers. The duration, severity and future impact of the COVID-19 pandemic are highly uncertain and could result in significant disruptions to the business operations of the Company’s customers. If one or more of these significant customers significantly decreases their orders for the Company’s products, or if we are unable to deliver finished products to the Customer in connection with such orders, the Company’s business could be materially and adversely affected.

Long-lived Assets: Long-lived assets consist of land, building and property, plant, and equipment. As of March 31, 2021 and September 30, 2020, approximately 98% and 97%, respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China.