SEGMENT REPORTING

6 Months Ended

Nov. 30, 2013

SEGMENT REPORTING

SEGMENT REPORTING    

In accordance with ASC 280-10, Segment Reporting, we have identified two reportable segments: EDG and Canvys.

EDG provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment.

Canvysprovides global customized display solutions serving the corporate enterprise, financial, healthcare, industrial, and OEM markets.

The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

	Three Months Ended				Six Months Ended
	November 30,   2013		December 1,   2012		November 30, 2013		December 1, 2012
EDG
Net Sales	$	26,163	$	26,186	$	51,642	$	51,813
Gross Profit	8,507		7,930		16,366		15,930
Canvys
Net Sales	$	9,273	$	10,417	$	18,051	$	20,440
Gross Profit	2,500		2,812		4,833		5,458

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.    

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

	Three Months Ended						Six Months Ended
	November 30, 2013			December 1, 2012			November 30, 2013			December 1, 2012
Net Sales
North America	$	14,296		$	16,436		$	28,492		$	32,182
Asia/Pacific	6,248			5,437			12,553			11,784
Europe	12,175			12,305			23,665			23,042
Latin America	2,574			2,320			4,771			4,767
Other	143			105			212			478
Total	$	35,436		$	36,603		$	69,693		$	72,253
Gross Profit (loss)
North America	$	4,687		$	5,520		$	9,584		$	10,809
Asia/Pacific	2,144			1,860			4,089			4,054
Europe	4,111			3,806			7,706			7,030
Latin America	1,011			788			1,834			1,616
Other	(946		)	(1,232		)	(2,014		)	(2,121		)
Total	$	11,007		$	10,742		$	21,199		$	21,388

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses.