Segment Information

6 Months Ended

Feb. 29, 2012

Segment Information [Abstract]

Segment Information

6. SEGMENT INFORMATION

Our reporting segments consist of the Wireless Solutions segment and the Wireless Components segment. We consider the products within the Wireless Solutions segment similar in that they primarily consist of wireless radios targeted on the medical and industrial markets. We consider the products within the Wireless Components segment similar in that they primarily consist of simple wireless connectivity components targeted on the automotive, consumer and other markets. We use segment information when producing our general-purpose financial statements.

Our chief executive officer reviews discrete gross margin information on these two segments and has made decisions on allocation of resources based on this information and our strategy. Most of our management functions that relate to operating expenses are managed on a consolidated basis. Because of the way we manage the business, we do not have discrete segment information for operating expenses and many balance sheet accounts. The information we are presenting below represents the information we have readily available to us.

As a result of the shared services reported separately, the segment information may not be indicative of the financial position or results of operations that would have been achieved had these segments operated as unaffiliated entities. There were no intersegment sales.

Our strategy is to focus our product and market development efforts and resources on the Wireless Solutions segment, which we believe gives us greater potential for both increased sales and gross margin.

Information concerning the operations and assets in these reportable segments is as follows (in thousands):

	Three Months Ended						Six Months Ended
	February 29, 2012			February 28, 2011			February 29, 2012			February 28, 2011
Net Sales:
Wireless Solutions segment	$	4,360		$	3,677		$	8,570		$	7,642
Wireless Components segment		3,700			3,910			7,888			8,457
Total	$	8,060		$	7,587		$	16,458		$	16,099
Gross Profit:
Wireless Solutions segment	$	1,762		$	1,486		$	3,215		$	3,069
Wireless Components segment		1,028			1,243			2,222			2,669
Total	$	2,790		$	2,729		$	5,437		$	5,738
Operating Expenses (not allocated to segments):
Research and development		771			758			1,463			1,656
Sales and marketing		1,292			1,248			2,542			2,437
General and administrative		547			597			1,085			1,291
Corporate development		161			—			161			—
Income from operations	$	19		$	126		$	186		$	354
Gross Profit percent to sales:
Wireless Solutions segment		40.4	%		40.4	%		37.5	%		40.2	%
Wireless Components segment		27.8	%		31.8	%		28.2	%		31.6	%
Total		34.6	%		36.0	%		33.0	%		35.6	%

	February 29, 2012		August 31, 2011
Segment assets:
Wireless Solutions segment	$	8,829	$	7,306
Wireless Components segment		4,258		4,750
Corporate and unallocated		2,197		2,358
Total	$	15,284	$	14,414