Segment Information

3 Months Ended

Oct. 02, 2016

Segment Information

Segment Information

NOTE 13 – Segment Information

The Company’s operations are classified into four reportable business segments:  Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group.

· The Precision Components Group companies provide highly engineered fabricated metal components using processes consisting of metal injection molding and precision metal stamping.  Industries served include aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices.

· The 3DMT Group consists of our tooling product line, 3DMT (our 3D printing and additive manufacturing operations), and ATC.

· The Flanges and Fittings Group consists of General Flange & Forge LLC (“GF&F”).  GF&F provides custom machining solutions and special flange facings.

· The Wireless Group focuses on wireless broadband technology related to propagation and optimization.  It designs and develops hardware, including antennas, radios, and related accessories, used in broadband, industrial, and other wireless networks.  Products are sold to public and private carriers, wireless infrastructure providers, wireless equipment distributors, value added resellers, and other original equipment manufacturers.

The historical results of Tekna Seal, which were included in the Precision Components Group segment, have been reflected as discontinued operations; therefore, historical segment information has been restated.  Summarized segment information for the three month periods ended October 2, 2016 and September 27, 2015 is as follows (in thousands):

	Three months ended
	October 2,		September 27,
	2016		2015
Sales:
Precision Components Group	$	19,332	$	17,069
3DMT Group		6,141		5,056
Flanges and Fittings Group		1,113		1,172
Wireless Group		240		334
Consolidated sales	$	26,826	$	23,631
Operating costs:
Precision Components Group	$	17,435	$	16,261
3DMT Group		6,823		5,209
Flanges and Fittings Group		983		968
Wireless Group		245		288
Consolidated operating costs	$	25,486	$	22,726
Segment operating income (loss):
Precision Components Group	$	1,897	$	808
3DMT Group		(682)		(153)
Flanges and Fittings Group		130		204
Wireless Group		(5)		46
Corporate (1)		(1,388)		(808)
Total segment operating (loss) income	$	(48)	$	97
Interest expense, net		(1,107)		(1,140)
Loss on extinguishment of debt		(723)		—
Other (expense) income, net		(33)		3
Non-operating expense		(1,863)		(1,137)
Consolidated loss before income taxes and non-controlling interest	$	(1,911)	$	(1,040)

(1)Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of director’s fees.