Business Segment Information

12 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Business Segment Information

Note 11—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, power 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 June 30, 2013

	Communications		Government and Enterprise		Corporate			Total
Net revenue	$	116,047	$	94,943	$	—		$	210,990
Cost of sales		56,166		60,981		943			118,090
Gross profit		59,881		33,962		(943	)		92,900
Operating expenses		36,612		27,922		33,711		$	98,245
Operating income (loss)	$	23,269	$	6,040	$	(34,654	)	$	(5,345	)
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

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
	June 30, 2013		July 1, 2012		July 3, 2011
	(In thousands)
Selling, general and administrative costs	$	24,855	$	20,589	$	13,991
Research and development cost		3,115		488		—
Restructuring charges		5,741		1,223		8,057
Corporate-related total	$	33,711	$	22,300	$	22,048

Our export sales, based on the location of the customer, accounted for 37%, 38%, and 35%, of our net revenue in fiscal 2013, 2012, and 2011 respectively. The geographical components of revenue are as follows:

	Year ended
	June 30, 2013			July 1, 2012			July 3, 2011
United States		63	%		62	%		65	%
International:
Asia		15	%		14	%		11	%
Europe		17	%		17	%		17	%
Canada		3	%		4	%		3	%
Latin America		2	%		3	%		4	%

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 2013, 2012 and 2011, no customer accounted for 10% or more of our net revenue. As of June 30, 2013 and July 1, 2012, no customer accounted for 10% or more of the outstanding accounts receivable balance.