Note 7 - Segment Reporting

6 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

7

– Segment Reporting

The Company is reporting its financial performance based on its external reporting segments: Cable Television and Telecommunications. These reportable segments are described below.

Cable Television (“Cable TV”)

The Company’s Cable TV segment sells new, surplus and re-manufactured cable television equipment throughout North America, Central America, South America and, to a substantially lesser extent, other international regions that utilize the same technology. In addition, this segment also repairs cable television equipment for various cable companies.

Telecommunications (“Telco”)

The Company’s Telco segment sells certified used telecommunications networking equipment from a broad range of manufacturers to customers primarily in North America as well as other international regions. In addition, this segment also offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling program.

The Company evaluates performance and allocates its resources based on operating income. The accounting policies of its reportable segments are the same as those described in the summary of significant accounting policies.

Segment assets consist primarily of cash and cash equivalents, accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets.

	Three Months Ended						Six Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Sales
Cable TV	$	5,792,272		$	7,248,191		$	12,625,291		$	13,367,925
Telco		5,813,777			1,065,624			9,850,071			1,065,624
Intercompany		(239,510	)		−			(271,665	)		−
Total sales	$	11,366,539		$	8,313,815		$	22,203,697		$	14,433,549
Gross profit
Cable TV	$	1,787,639		$	1,852,660		$	3,822,484		$	3,715,888
Telco		2,455,873			378,507			4,252,831			378,507
Total gross profit	$	4,243,512		$	2,231,167		$	8,075,315		$	4,094,395
Operating income (loss)
Cable TV	$	347,839		$	264,365		$	966,650		$	497,717
Telco		92,518			(692,618	)		230,051			(692,618	)
Total operating income (loss)	$	440,357		$	(428,253	)	$	1,196,701		$	(194,901	)

	March 31, 2015		September 30, 2014
Segment assets
Cable TV	$	28,085,530	$	29,241,335
Telco		19,813,675		17,781,114
Non-allocated		6,423,582		6,383,232
Total assets	$	54,322,787	$	53,405,681