Business Segment Information

12 Months Ended

Jul. 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 certain of our selling, general, and administrative expenses, integration and 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 communications networks and equipment.

Government and Enterprise

Our Government and Enterprise business provides timing 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.

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

Year ended July 1, 2012

	Communications		Government and Enterprise		Corporate			Total
Net revenue	$	132,345	$	105,371	$	—		$	237,716
Cost of sales		65,781		66,745		1,178			133,704
Gross profit		66,564		38,626		(1,178	)		104,012
Operating expenses		37,867		27,001		22,300			87,168
Operating income (loss)	$	28,697	$	11,625	$	(23,478	)	$	16,844
Year ended July 3, 2011
	Communications		Government and Enterprise		Corporate			Total
Net revenue	$	119,104	$	89,042	$	—		$	208,146
Cost of sales		60,112		48,951		9,351			118,414
Gross profit		58,992		40,091		(9,351	)		89,732
Operating expenses		36,302		24,251		22,048			82,601
Operating income (loss)	$	22,690	$	15,840	$	(31,399	)	$	7,131
Year ended June 27, 2010
	Communications		Government and Enterprise		Corporate			Total
Net revenue	$	139,079	$	82,237	$	—		$	221,316
Cost of sales		69,945		48,226		5,625			123,796
Gross profit		69,134		34,011		(5,625	)		97,520
Operating expenses		37,137		21,366		26,888			85,391
Operating income (loss)	$	31,997	$	12,645	$	(32,513	)	$	12,129

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:

	Year ended
	July 1, 2012		July 3, 2011		June 27, 2010
	(In thousands)
Selling, general and adminstrative costs	$	22,257	$	23,342	$	22,222
Restructuring charges		1,223		8,057		10,291
Corporate-related total	$	23,480	$	31,399	$	32,513

Our export sales, based on the location of the customer, accounted for 38%, 35%, and 33%, of our net revenue in fiscal 2012, 2011, and 2010 respectively. The geographical components of revenue are as follows:

	Year ended
	July 1, 2012			July 3, 2011			June 27, 2010
United States		62	%		65	%		67	%
International:
Asia		14	%		11	%		11	%
Europe		17	%		17	%		15	%
Canada		4	%		3	%		2	%
Latin America		3	%		4	%		3	%
Rest of the world		0	%		0	%		2	%

With the exception of property, plant and equipment, we do not identify or allocate our long-lived assets by geographic area. No material amount of property, plant and equipment exists outside the United States.

In fiscal 2012, 2011 and 2010, no customer accounted for 10% or more of our net revenue.