Segment Data and Related Information

12 Months Ended

Sep. 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, total assets, 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:

(in thousands)	For the Fiscal Years Ended September 30,
	2020		2019		2018
Revenue:
Aerospace and Defense	$	55,240	$	33,086	$	13,567
Broadband		54,888		54,179		72,050
Total revenue	$	110,128	$	87,265	$	85,617
Segment Profit:
Aerospace and Defense gross profit	$	16,729	$	9,207	$	2,406
Aerospace & Defense R&D expense		17,469		10,448		4,185
Aerospace and Defense segment loss	$	(740)	$	(1,241)	$	(1,779)
Broadband gross profit	$	18,853	$	5,882	$	16,081
Broadband R&D expense		2,800		8,995		11,202
Broadband segment profit (loss)	$	16,053	$	(3,113)	$	4,879
Total consolidated segment profit (loss)	$	15,313	$	(4,354)	$	3,100
Unallocated (income) expense:
Selling, general and administrative		24,631		32,080		21,377
(Gain) loss on sale of assets		(2,284)		(302)		34
Interest expense (income), net		104		(629)		(733)
Foreign exchange (gain) loss		(198)		427		434
Other income		-		-		(110)
Total unallocated expense		22,253		31,576		21,002
Loss before income tax expense	$	(6,940)	$	(35,930)	$	(17,902)

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 Fiscal Years ended September 30,
(in thousands)	2020		2019		2018
United States and Canada	$	91,205	$	68,607	$	69,543
Asia		9,397		11,637		10,386
Europe		5,559		6,209		5,422
Other		3,967		812		266
Total revenue	$	110,128	$	87,265	$	85,617

Significant Customers: Significant customers are defined as customers representing greater than 10% of our consolidated revenue. Revenue from three, three and two of our significant customers represented an aggregate of 57%, 55% and 60% of our consolidated revenue for the fiscal years ended September 30, 2020, 2019 and 2018, 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 September 30, 2020 and 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 Asia.