Note 9 - Segment Information

6 Months Ended

Apr. 30, 2023

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 April 30, 2023, we had two reportable segments – RF Connector and Cable Assembly (“RF Connector”) segment and Custom Cabling Manufacturing and Assembly (“Custom Cabling”) segment.

The RF Connector segment consists of two divisions and the Custom Cabling segment consists of four divisions. The six 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, Schrofftech, and Microlab. 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 user.

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 and Microlab divisions constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment.

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 and six months ended April 30, 2023 and 2022 (in thousands):

	Three Months Ended April 30,				Six Months Ended April 30,
	2023		2022		2023		2022
United States	$	20,908	$	19,950	$	37,012	$	36,366
Foreign Countries:
Canada		588		663		1,172		961
Italy		294		173		1,392		173
Mexico		1		53		3		78
All Other		507		666		1,063		845
		1,390		1,555		3,630		2,057
Totals	$	22,298	$	21,505	$	40,642	$	38,423

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the three months ended April 30, 2023 and 2022 are as follows (in thousands):

	RF Connector			Custom Cabling
	and			Manufacturing and
2023	Cable Assembly			Assembly		Corporate			Total
Net sales	$	8,650		$	13,648	$	-		$	22,298
(Loss) income before benefit for income taxes		(306	)		812		(89	)		417
Depreciation and amortization		477			146		-			623
Total assets		50,314			24,837		8,968			84,119
2022
Net sales	$	7,510		$	13,995	$	-		$	21,505
Income (loss) before provision for income taxes		577			807		(745	)		639
Depreciation and amortization		293			145		-			438
Total assets		34,398			26,812		8,437			69,647

Net sales, income (loss) before provision (benefit) for income taxes and other related segment information for the six months ended April 30, 2023 and 2022 are as follows (in thousands):

	RF Connector			Custom Cabling
	and			Manufacturing and
2023	Cable Assembly			Assembly			Corporate			Total
Net sales	$	17,708		$	22,934		$	-		$	40,642
Loss before benefit from income taxes		(60	)		(109	)		(736	)		(905	)
Depreciation and amortization		872			293			-			1,165
Total assets		50,314			24,837			8,968			84,119
2022
Net sales	$	11,433		$	26,990		$	-		$	38,423
Income (loss) before benefit from income taxes		633			1,121			(1,472	)		282
Depreciation and amortization		330			288			-			618
Total assets		34,398			26,812			8,437			69,647