Segment Data and Related Information

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Data and Related Information

NOTE 15.            Segment Data and Related Information

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. As a result of organizational changes effective in the beginning of fiscal year 2020, the Company has reassessed its reportable segments and determined that it has two reportable segments, (i) Aerospace and Defense and (ii) Broadband. All prior-period amounts have been adjusted retrospectively to reflect our reportable segment changes.

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 or general and administrative expenses to our segments, because management does not include the information in its measurement of the performance of the operating segments. Also, interest expense and interest income are not presented by segment because management does not include this information in its measurement of the performance of the operating segments.

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

		For the three months				For the nine months
(in thousands)		ended June 30,				ended June 30,
		2020		2019		2020		2019
Revenue:
Aerospace and Defense	$	14,025	$	8,118	$	40,742	$	19,131
Broadband		13,241		9,101		35,856		43,834
Total revenue	$	27,266	$	17,219	$	76,598	$	62,965
Segment Profit:
Aerospace and Defense gross profit	$	4,877	$	2,587	$	12,209	$	6,489
Aerospace & Defense R&D expense		3,925		2,559		11,867		5,792
Aerospace and Defense segment profit	$	952	$	28	$	342	$	697
Broadband gross profit	$	4,341	$	1,117	$	10,910	$	8,832
Broadband R&D expense		882		2,070		2,166		7,216
Broadband segment profit (loss)	$	3,459	$	(953)	$	8,744	$	1,616
Total consolidated segment profit (loss)	$	4,411	$	(925)	$	9,086	$	2,313
Unallocated (income) expense:
Selling, general and administrative		5,936		9,288		18,962		23,877
Gain on sale of assets		(312)		-		(2,229)		-
Gain from change in estimate on ARO obligation		-		-		-		(40)
Interest expense (income), net		40		(99)		54		(590)
Foreign exchange loss		20		349		29		31
Total unallocated expense		5,684		9,538		16,816		23,278
Loss before income tax expense	$	(1,273)	$	(10,463)	$	(7,730)	$	(20,965)

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

	For the three months				For the nine months
Revenue by Geographic Region	ended June 30,				ended June 30,
(in thousands)	2020		2019		2020		2019
United States and Canada	$	23,209	$	14,208	$	63,291	$	48,432
Asia		2,041		1,684		5,999		9,936
Europe		1,075		1,315		4,480		4,362
Other		941		12		2,828		235
Total revenue	$	27,266	$	17,219	$	76,598	$	62,965

Significant Customers: Significant customers are defined as customers representing greater than 10% of our consolidated revenue. During each of the three months ended June 30, 2020 and 2019, revenue from three of our significant customers represented an aggregate of 58% and 52% of our consolidated revenue, respectively. During each of the nine months ended June 30, 2020 and 2019, revenue from three and four of our significant customers represented an aggregate of 55% and 57% of our consolidated revenue, respectively.

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 decrease their orders for the Company’s products, 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 June 30, 2020 and September 30, 2019, approximately 97% and 85%, respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China.