SEGMENT REPORTING

9 Months Ended

Mar. 01, 2014

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				Nine Months Ended
	March 1,   2014		March 2,   2013		March 1, 2014		March 2, 2013
EDG
Net Sales	$	24,193	$	24,333	$	75,835	$	76,146
Gross Profit	7,139		7,407		23,505		23,337
Canvys
Net Sales	$	8,691	$	9,297	$	26,742	$	29,737
Gross Profit	2,512		2,503		7,345		7,961

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						Nine Months Ended
	March 1, 2014			March 2, 2013			March 1, 2014			March 2, 2013
Net Sales
North America	$	14,742		$	15,531		$	42,970		$	47,733
Asia/Pacific	4,996			4,878			17,548			16,651
Europe	10,986			11,010			34,651			34,190
Latin America	1,890			2,210			6,661			6,976
Other	270			1			747			333
Total	$	32,884		$	33,630		$	102,577		$	105,883
Gross Profit (loss)
North America	$	4,988		$	4,398		$	14,653		$	14,071
Asia/Pacific	1,547			1,642			5,631			5,338
Europe	3,485			3,143			11,190			9,651
Latin America	646			731			2,479			2,225
Other	(1,015		)	(4		)	(3,103		)	13
Total	$	9,651		$	9,910		$	30,850		$	31,298

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.