Note 9 - Segment Reporting

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

9

– 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 primarily sells certified used telecommunications networking equipment from a broad range of manufacturers to customers primarily in North America. In addition, this segment is a reseller of new telecommunications equipment from certain manufacturers. Also, this segment offers its customers decommissioning services for surplus and obsolete equipment, which it in turn processes through its recycling services.

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 and equipment, goodwill and intangible assets.

	Three Months Ended						Nine Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Sales
Cable TV	$	5,942,856		$	6,752,224		$	16,966,744		$	19,377,515
Telco		4,134,665			5,235,317			12,053,568			15,085,388
Intercompany		(17,279	)		(85,150	)		(123,215	)		(356,815	)
Total sales	$	10,060,242		$	11,902,391		$	28,897,097		$	34,106,088
Gross profit
Cable TV	$	2,126,744		$	2,367,221		$	5,612,691		$	6,189,705
Telco		1,339,407			1,777,386			4,203,452			6,030,217
Total gross profit	$	3,466,151		$	4,144,607		$	9,816,143		$	12,219,922
Income (loss) from operations
Cable TV	$	528,651		$	846,372		$	981,770		$	1,813,022
Telco		(124,788	)		95,833			(152,943	)		325,884
Total income from operations	$	403,863		$	942,205		$	828,827		$	2,138,906

	June 30, 2016		September 30, 2015
Segment assets
Cable TV	$	25,356,102	$	26,494,430
Telco		16,916,218		17,094,713
Non-allocated		9,385,712		8,383,913
Total assets	$	51,658,032	$	51,973,056