Business Segment Information

9 Months Ended

Apr. 01, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 12. Business Segment Information

Symmetricom is organized into two operating segments: Communications and Government and Enterprise. These two operating segments are our reporting segments. The Chief Operating Decision Maker (CODM), as defined by authoritative accounting guidance on Segment Reporting, is our President and Chief Executive Officer (CEO). Our CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes.

With the exception of intangible assets, we do not identify or allocate assets by operating segment, nor does our CEO evaluate operating segments using discrete asset information. We do not allocate restructuring charges, interest and other income, interest expense, or income taxes to operating segments.

The following describes our two reporting segments:

Communications

Our Communications business supplies timing technologies and services for worldwide communications infrastructure. Products include primary reference sources, synchronization distribution systems, embedded components and software, and test and measurement equipment, all of which support the timing and synchronization requirements of telecommunications and cable networks and equipment.

Government and Enterprise

Our Government and Enterprise business provides time technology products for aerospace/defense, IT infrastructure and science and metrology applications. Precision time and frequency systems enable a range of critical operations, including the international time scale, global navigation, the management of power grids, synchronization of complex control systems, and signals intelligence for securing communications in remote and hostile environments. Through fiscal 2011, we named this business as Government; however, in the first quarter of fiscal 2012, we changed the name to Government and Enterprise to more accurately reflect the business' customers and initiatives.

Segment revenue, gross profit and operating income (loss) were as follows during the periods presented:

Three months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	32,646	$	27,792	$	—		$	60,438
Cost of sales		16,672		19,041		64			35,777
Gross profit		15,974		8,751		(64	)		24,661
Operating expenses		9,121		6,697		5,568			21,386
Operating income (loss)	$	6,853	$	2,054	$	(5,632	)	$	3,275
Three months ended March 27, 2011
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	30,398	$	20,836	$	—		$	51,234
Cost of sales		14,941		12,097		1,330			28,368
Gross profit		15,457		8,739		(1,330	)		22,866
Operating expenses		8,471		5,820		4,936			19,227
Operating income (loss)	$	6,986	$	2,919	$	(6,266	)	$	3,639
Nine months ended April 1, 2012
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	99,523	$	75,587	$	—		$	175,110
Cost of sales		49,807		48,332		1,155			99,294
Gross profit		49,716		27,255		(1,155	)		75,816
Operating expenses		28,369		19,712		16,728			64,809
Operating income (loss)	$	21,347	$	7,543	$	(17,883	)	$	11,007
Nine months ended March 27, 2011
	Communications		Government and Enterprise		Corporate			Total
	(In thousands)
Net revenue	$	83,916	$	63,541	$	—		$	147,457
Cost of sales		42,188		35,232		8,987			86,407
Gross profit		41,728		28,309		(8,987	)		61,050
Operating expenses		25,654		17,590		15,002			58,246
Operating income (loss)	$	16,074	$	10,719	$	(23,989	)	$	2,804

The information in the Corporate category above represents corporate-related costs that are not allocated to either of our two segments for the purpose of evaluating their performance. The following table outlines our major corporate-related costs:

	Three Months Ended					Nine Months Ended
	April 1, 2012			March 27, 2011		April 1, 2012		March 27, 2011
	(In thousands)					(In thousands)
Selling, general and adminstrative costs	$	5,643		$	6,078	$	16,604	$	16,987
Restructuring charges		(11	)		188		1,279		7,002
Corporate-related total	$	5,632		$	6,266	$	17,883	$	23,989