Note 9 - Segment Information

3 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

9

–

Segment information

We aggregate operating divisions into

two

reporting segments that have similar economic characteristics primarily in the following areas: (

1

) the nature of the product and services; (

2

) the nature of the production process; (

3

) the type or class of customer for their products and services; (

4

) the methods used to distribute their products or services; and (

5

) if applicable, the nature of the regulatory environment. Based upon this evaluation, as of

January 31, 2021,

we had

two

segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).

The RF Connector segment consisted of

one

division and the Custom Cabling segment was composed of

four

divisions. The

five

divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. While each segment has similar products and services, there was little overlapping of these services to their customer base. The biggest difference in segments is in the channels of sales: sales or product and services for the RF Connector segment were primarily through the distribution channel, while the Custom Cabling segment sales were through a combination of distribution and direct to the end customer.

Management identifies segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment.

As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole.

All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the

three

months ended

January 31, 2021

and

2020

(in thousands):

	Three Months Ended January 31,
	2021		2020
United States	$	9,379	$	12,173
Foreign Countries:
Canada		525		116
Mexico		-		5
All Other		98		120
		623		241
Totals	$	10,002	$	12,414

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the

three

months ended

January 31, 2021

and

2020

are as follows (in thousands): 

	RF Connector		Custom Cabling
	and		Manufacturing and
	Cable Assembly		Assembly			Corporate			Total
2021
Net sales	$	3,575	$	6,427		$	-		$	10,002
Income (loss) before benefit for income taxes		453		(1,042	)		(8	)		(597	)
Depreciation and amortization		35		202			-			237
Total assets		7,667		15,202			17,766			40,635
2020
Net sales	$	3,189	$	9,225		$	-		$	12,414
Income (loss) before provision for income taxes		282		(281	)		11			12
Depreciation and amortization		42		213			-			255
Total assets		7,496		17,158			15,178			39,832