(

)

Significant Customer and

Industry Segment Information

The Company has

two

reportable segments: Microsource and the Giga-tronics Division. Microsource’s primary business is the design of custom Microwave Integrated Components (“MIC”) as well as the production of MIC components using chip and wire assembly methods. The Microsource Division offers a line of tunable, synthesized Band Reject Filters (BRF) for solving interference problems in RADAR/EW applications. Self-protection systems onboard high-performance military aircraft often require RADAR filters to block electromagnetic interference generated by other onboard electronic systems, particularly the aircraft’s main RADAR. These high-speed, tunable notch filters are designed to block interference from both continuous wave and wide bandwidth emissions using proprietary driver and phase lock technology. The Company designs these filters specifically for each application. Microsource’s

two

largest customers are prime contractors for which it develops and manufactures RADAR filters used in fighter jet aircraft.

The Giga-tronics Division designs, manufactures and markets a family of functional test products for the RADAR and Electronic Warfare (RADAR/EW) segment of the defense electronics market. The Company’s RADAR/EW test products are used to evaluate and improve the performance of RADAR/EW systems.

The tables below presents information for the

two

reportable segments:

			Three Month Period Ended							Three Month Period Ended
(In thousands)	Dec. 2 8 , 201 9		Dec. 2 8 , 201 9					Dec . 29 , 201 8		Dec. 29 , 201 8
	Assets		Net Sales		Net Income (Loss)			Assets		Net Sales		Net Income (Loss)
Giga-tronics Division	$	6,231	$	176	$	(1,058	)	$	4,020	$	67	$	(1,227	)
Microsource		2,952		2,456		902			2,570		1,826		737
Total	$	9,183	$	2,632	$	(156	)	$	6,590	$	1,893	$	(490	)

			Nine Month Period Ended							Nine Month Period Ended
(In thousands)	Dec. 2 8 , 201 9		Dec. 2 8 , 201 9					Dec. 29, 2018		Dec. 29 , 2 018
	Assets		Net Sales		Net Income (Loss)			Assets		Net Sales		Net Income (Loss)
Giga-tronics Division	$	6,231	$	2,465	$	(2,511	)	$	4,020	$	246	$	(4,081	)
Microsource		2,952		6,700		2,487			2,570		7,377		3,064
Total	$	9,183	$	9,165	$	(24	)	$	6,590	$	7,623	$	(1,017	)

During the

third

quarter of fiscal

2020,

two

customers accounted for approximately

77%

of the Company’s consolidated revenues. One of the customers accounted for

45%

of the Company’s consolidated revenue and was included in the Microsource segment. A

second

customer accounted for

32%

of the Company’s consolidated revenue and was included in the Microsource segment. During the

third

quarter of fiscal

2019,

two

customers accounted for approximately

97%

of the Company’s consolidated revenues. One of the customers accounted for

68%

of the Company’s consolidated revenue and was included in the Microsource segment. A

second

customer accounted for

29%

of the Company’s consolidated revenue and was included in the Microsource segment.

During the

first

nine

months of fiscal

2020,

three

customers accounted for approximately

89%

of the Company’s consolidated revenues. One of the customers accounted for

45%

of the Company’s consolidated revenues and was primarily included in the Microsource segment. A

second

and

third

customer accounted for a total of

44%

of the Company’s consolidated revenue and were included in the Microsource segment and the Giga-tronics Division. During the

first

nine

months of fiscal

2019,

two

customers accounted for approximately

97%

of the Company’s consolidated revenues. One of the customers accounted for

64%

of the Company’s consolidated revenues and was primarily included in the Microsource segment. A

second

customer accounted for

33%

of the Company’s consolidated revenue and was also included in the Microsource segment.