NOTE 13 – Segment Information

During fiscal 2017, the Company sold its non-core subsidiaries, Tekna Seal and ARC Wireless. Separately, the Company classified its Flanges and Fittings Group segment as held for sale as of June 30, 2017. The completed and planned 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 medical and dental devices, aerospace, automotive, defense, consumer durables, and electronic 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 years ended June 30, 2018 and 2017 is as follows (in thousands):


	Fiscal Years Ended June 30,
	2018		2017

Sales:
Precision Components Group	$	60,643	$	75,053
Stamping Group		19,376		21,061
3DMT Group		2,419		2,528
Wireless Group		—		427
Consolidated sales	$	82,438	$	99,069

Operating costs:
Precision Components Group	$	64,592	$	80,133
Stamping Group		19,698		21,766
3DMT Group		4,353		3,963
Wireless Group		—		554
Consolidated operating costs	$	88,643	$	106,416

Segment operating income (loss):
Precision Components Group	$	(3,949)	$	(5,080)
Stamping Group		(322)		(705)
3DMT Group		(1,934)		(1,435)
Wireless Group		—		(127)
Corporate (1)		(3,407)		(5,397)
Total segment operating loss	$	(9,612)	$	(12,744)

Interest expense, net		(3,625)		(4,008)
Loss on extinguishment of debt		—		(723)
Other income, net		298		670
Non-operating expense		(3,327)		(4,061)
Consolidated loss before income taxes and non-controlling interest	$	(12,939)	$	(16,805)

(1)

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


	Fiscal Years Ended June 30,
	2018		2017
Capital expenditures:
Precision Components Group	$	4,463	$	4,710
Stamping Group		1,186		1,292
3DMT Group		17		568
Flanges and Fittings Group		—		71
Consolidated capital expenditures	$	5,666	$	6,641


Depreciation and amortization expense:
Precision Components Group	$	6,938	$	6,750
Stamping Group		2,496		2,323
3DMT Group		789		765
Flanges and Fittings Group		—		73
Wireless Group		—		19
Consolidated depreciation and amortization expense	$	10,223	$	9,930


	As of
	June 30, 2018		June 30, 2017
Total assets:
Precision Components Group	$	46,945	$	50,641
Stamping Group		19,518		19,944
3DMT Group *		(1,105)		(3,033)
Flanges and Fittings Group *		(2,428)		1,182
Corporate		27,003		30,889
Consolidated total assets	$	89,933	$	99,623

*Negative assets reflect intersegment accounts eliminated in consolidation.

Geographic information for the Company is as follows (in thousands):


	Years ended
	June 30,		June 30,
	2018		2017
Sales:
U.S.	$	73,487	$	90,607
International		8,951		8,462
	$	82,438	$	99,069


	As of June 30,
	2018		2017
Property and equipment, net:
U.S.	$	32,234	$	33,398
International		7,746		7,951
	$	39,980	$	41,349