Segment Reporting

6 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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

Wireless Infrastructure Services (“Wireless”)

The Wireless segment provides turn-key wireless infrastructure services for the four major U.S. wireless carriers, communication tower companies, national integrators, and original equipment manufacturers that support these wireless carriers. These services primarily consist of the installation and upgrade of technology on cell sites and the construction of new small cells for 5G.

Telecommunications (“Telco”)

The Company’s Telco segment sells new and refurbished telecommunications networking equipment, including both central office and customer premise equipment, to its customer base of telecommunications providers, enterprise customers and resellers located primarily in North America. This segment also offers its customers repair and testing services for telecommunications networking equipment. In addition, this segment 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, inventories, property and equipment, goodwill and intangible assets.

The Company changed the allocation of corporate general and administrative expenses between our reportable business segments. At September 30, 2020, the Company did not allocate the corporate general and administrative expenses to the reportable segments and listed those expenses separate from the operating results of those reportable segments. During fiscal 2021, the Company reviewed its reportable segments and its corporate general and administrative expenses and allocation methodology, which resulted in the Company allocating its corporate general and administrative expenses to the reportable segments. The prior period allocations have been adjusted to reflect the Company's current allocation methodology.

	Three Months Ended						Six Months Ended
(in thousands)	March 31, 2021			March 31, 2020			March 31, 2021			March 31, 2020
Sales
Wireless	$	4,334		$	4,672		$	9,581		$	11,470
Telco	8,333			7,287			15,835			14,451
Total sales	$	12,667		$	11,959		$	25,416		$	25,921
Gross profit
Wireless	$	1,527		$	175		$	3,136		$	2,048
Telco	1,654			(614)			3,674			1,105
Total gross profit (loss)	$	3,181		$	(439)		$	6,810		$	3,153
Wireless	35		%	4		%	33		%	18		%
Telco	20		%	(8)		%	23		%	8		%
Total gross profit margin (loss)	25		%	(4)		%	27		%	12		%
Loss from operations
Wireless	$	(1,537)		$	(2,453)		$	(2,642)		$	(3,235)
Telco	(1,510)			(12,226)			(2,319)			(13,207)
Total loss from operations	$	(3,047)		$	(14,679)		$	(4,961)		$	(16,442)

(in thousands)	March 31, 2021		September 30, 2020
Segment assets
Wireless	$	5,170	$	5,324
Telco	13,019		12,298
Non-allocated	10,369		14,881
Total assets	$	28,558	$	32,503