Segment Information

12 Months Ended

Apr. 30, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

13.         Segment Information

The Company operates under two reportable segments based on the geographic locations of its subsidiaries:

(1) FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets- communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military. The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business.

(2) FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications.  This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the U.S. market.

The Company measures segment performance based on total revenues and profits generated by each geographic location rather than on the specific types of customers or end-users.  Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s management views the business.

The accounting policies of the two segments are the same as those described in Note 1.  The Company evaluates the performance of its segments and allocates resources to them based on operating profit which is defined as income before investment income, interest expense and taxes.  All acquired assets, including intangible assets, are included in the assets of both reporting segments.

The table below presents information about reported segments for each of the years ended April 30, 2021 and 2020, respectively, with reconciliation of segment amounts to consolidated amounts as reported in the consolidated statements of operations or the consolidated balance sheets for each of the years (in thousands):

	For the Years Ended April 30,
	2021			2020
Revenues:
FEI-NY	$	42,400		$	31,751
FEI-Zyfer		13,835			10,914
less intersegment revenues		(1,981	)		(1,158	)
Consolidated revenues	$	54,254		$	41,507

Operating (loss) income:
FEI-NY	$	(1,067	)	$	(9,910	)
FEI-Zyfer		655			(673	)
less intersegment revenues		(204	)		-
Corporate		(342	)		(339	)
Consolidated operating loss	$	(958	)	$	(10,922	)

	For the Years Ended April 30,
	2021		2020
Identifiable assets:
FEI-NY	$	34,869	$	44,599
FEI-Zyfer		12,888		13,344
less intersegment balances		-		(8,586	)
Corporate		38,259		41,919
Consolidated identifiable assets	$	86,016	$	91,276

Depreciation and amortization (allocated):
FEI-NY	$	3,110	$	3,192
FEI-Zyfer		191		112
Corporate		-		15
Consolidated depreciation and amortization expense	$	3,301	$	3,319

Major Customers

The Company’s products are sold to both commercial and governmental customers.  For the years ended April 30, 2021 and 2020, approximately 91% and 83%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.

In Fiscal 2021 and 2020, revenues to three and four customers, respectively, of the FEI-NY segment accounted for more than 10% of that segment’s revenues. In Fiscal 2021 and 2020 two and four customers, respectively, also exceeded 10% of the Company’s consolidated revenues. In the FEI-Zyfer segment, three and two customers, respectively, accounted for more than 10% of that segment’s revenues in Fiscal 2021 and 2020.

The loss by the Company of any one of these customers would have a material adverse effect on the Company’s business.  The Company believes its relationship with these customers is mutually satisfactory.  Sales to the major customers referenced above can include commercial and governmental end users.

Foreign Sales

Revenues in each of the Company’s segments include sales to foreign governments or to companies located in foreign countries.  For the years ended April 30, 2021 and 2020, revenues, based on the location of the procurement entity and excluding intersegment sales, were derived from the following countries (in thousands):

	2021		2020
Belgium	$	36	$	22
Brazil		106		-
France		123		-
China		215		713
Russia		94		85
Germany		31		13
Italy		27		169
Israel		82		240
Singapore		32		82
Taiwan		101		-
United Kingdom		261		-
Other		315		441
	$	1,423	$	1,765