Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280, Segment Reporting.

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED SEPTEMBER 30, 2018
Net revenues to unaffiliated customers	$	131,349	$	11,438	$	1,269	$	—		$	144,056
Inter-geographic revenues	1,647		358		—		(2,005		)	—
Net revenues	$	132,996	$	11,796	$	1,269	$	(2,005	)	$	144,056
THREE MONTHS ENDED SEPTEMBER 30, 2017
Net revenues to unaffiliated customers	$	97,715	$	7,478	$	876	$	—		$	106,069
Inter-geographic revenues	1,747		22		—		(1,769		)	—
Net revenues	$	99,462	$	7,500	$	876	$	(1,769	)	$	106,069

Effective July 1, 2018, the Company adopted the requirements of ASC 606, Revenue from Contracts with Customers, using the retrospective method. As previously mentioned, such adoption did not have a material impact to the Company's consolidated financial statements. The following tables present disaggregated revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application and/or product grouping is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application and/or product grouping for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each revenue category.

The following table below presents the Company's net revenue by end user for the periods presented:



	Three Months Ended September 30,
	2018		2017
Domestic (1)	$	130,579	$	89,678
International/Foreign Military Sales (2)	13,477		16,391
Total Net Revenue	$	144,056	$	106,069

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined.

(2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S.

The following table below presents the Company's net revenue by end application for the periods presented:



	Three Months Ended September 30,
	2018		2017
Radar (1)	$	40,979	$	36,540
Electronic Warfare (2)	24,054		28,008
Other Sensor & Effector (3)	13,658		9,749
Total Sensor & Effector	78,691		74,297
C4I (4)	44,224		12,825
Other (5)	21,141		18,947
Total Net Revenue	$	144,056	$	106,069

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table below presents the Company's net revenue by product grouping for the periods presented:



	Three Months Ended September 30,
	2018		2017
Components (1)	$	40,400	$	32,812
Modules and Sub-assemblies (2)	51,592		47,732
Integrated Subsystems (3)	52,064		25,525
Total Net Revenue	$	144,056	$	106,069

(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices.

(2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers.

(3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company.

The geographic distribution of the Company’s long-lived assets is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations		Total
September 30, 2018	$	46,919	$	3,891	$	19	$	—	$	50,829
June 30, 2018	$	47,997	$	2,974	$	9	$	—	$	50,980

Identifiable long-lived assets exclude goodwill and intangible assets.

Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
Raytheon Company	19	%	21	%
Lockheed Martin Corporation	*		18	%
Northrop Grumman Corporation	*		10	%
	19	%	49	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
F-35	12	%	*
SEWIP (1)	*		11	%
	12	%	11	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

(1) SEWIP includes 10% and 1% of revenues during the three months ended September 30, 2017 related to the SEWIP Block II and SEWIP Block III, respectively.