Segment Information

3 Months Ended

Oct. 01, 2017

Segment Information

Segment Information

NOTE 12 – Segment Information

During fiscal 2017, the Company sold its non-core subsidiaries, Tekna Seal and ARC Wireless.  Subsequently, in September 2017, the Company sold its non-core subsidiary, GF&F, which comprised the Flanges and Fittings Group segment.  The completed divestiture of these non-core businesses, along with the growth in its 3D metal printing business, has changed the way in which management and its chief operating decision maker evaluate performance and allocate resources.  As a result, during the quarter ended June 30, 2017, the Company revised its business segments, consistent with its management of the business and internal financial reporting structure.  Specifically, the Precision Components Group now includes the results of its plastic injection molding operations and its tooling product line, which were previously included within the 3DMT Group.  Results depicted in its 3DMT Group business unit now solely reflect those operations associated with metal 3D printing and associated services.  In addition, its precision metal stamping operations are now reported within the newly created Stamping Group, which were previously included in the Precision Components Group.

As a result of the above transactions, the Company will report three segments as part of continuing operations:  Precision Components Group, Stamping Group, and 3DMT Group.

· The Precision Components Group companies provide highly engineered, precision metal components using processes consisting of metal injection molding. It also includes our tooling product line and plastic injection molding.  Industries served include aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices.

· The Stamping Group consists of our precision metal stamping operations.

· The 3DMT Group consists of 3D Material Technologies, LLC (“3DMT”), our metal 3D printing and additive manufacturing operations.

The historical results of Tekna Seal, which were included in the Precision Components Group segment, and the historical results of the Flanges and Fittings Group segment have been reflected as discontinued operations.  Historical segment information has been restated.  Summarized segment information for the three months ended October 1, 2017 and October 2, 2016 is as follows (in thousands):

	Three months ended
	October 1,		October 2,
	2017		2016
Sales:
Precision Components Group	$	14,333	$	20,004
Stamping Group		4,752		5,179
3DMT Group		865		289
Wireless Group		—		240
Consolidated sales	$	19,950	$	25,712
Operating costs:
Precision Components Group	$	15,270	$	18,603
Stamping Group		5,001		4,968
3DMT Group		806		687
Wireless Group		—		245
Consolidated operating costs	$	21,077	$	24,503
Segment operating income (loss):
Precision Components Group	$	(937)	$	1,401
Stamping Group		(249)		211
3DMT Group		59		(398)
Wireless Group		—		(5)
Corporate (1)		(937)		(1,388)
Total segment operating loss	$	(2,064)	$	(179)
Interest expense, net		(1,012)		(1,107)
Loss on extinguishment of debt		—		(723)
Other expense, net		(37)		(33)
Non-operating expense		(1,049)		(1,863)
Consolidated loss before income taxes and non-controlling interest	$	(3,113)	$	(2,042)

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