Business Segments

3 Months Ended

Jun. 26, 2011

Business Segments [Abstract]

Business Segments

Note 8. Business Segments

The Company evaluates revenue, gross profit and inventory in three business segments: (1) Network infrastructure products are used to build, repair and upgrade wireless telecommunications, computing and Internet networks. Products include base station antennas, cable and transmission lines, fixed and mobile broadband equipment, wireless local area network (WLAN) products, wireless networking, filtering systems, small towers, lightning protection devices, connectors, security and surveillance products, power systems and miscellaneous hardware. Our network infrastructure service offering includes connector installation, custom jumper assembly, filter product tuning, site kitting, logistics integration and wireless network training. (2) Mobile devices and accessory products include cellular phone and data device accessories such as replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories and data and memory cards as well as two-way radios and related accessories. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including providing outsourced call centers and private label Internet sites, complement our mobile devices and accessory product offering. (3) Installation, test and maintenance products are used to install, tune, maintain and repair wireless communications equipment. Products include sophisticated analysis equipment and various frequency-, voltage- and power-measuring devices, as well as an assortment of tools, hardware, GPS, safety and replacement and component parts and supplies required by service technicians. Within the mobile devices and accessories line of business, the Company sells to both commercial and consumer markets. The network infrastructure and installation, test and maintenance lines of business sell primarily to commercial markets. The Company also regularly reviews its results of operations in three commercial customer categories and the consumer customer category, as described further below:

*   Commercial Public Carriers and Network Operators. Public carriers and network operators include systems operators that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers.

*   Commercial Resellers. Resellers include dealers and resellers that sell, install and/or service cellulartelephone, wireless networking, broadband and two-way radio communications equipment primarily for the enterprise market, and to a lesser extent, the consumer market. These resellers include local and national value-added resellers and retailers, as well as sales and installation centers operated by cellular and paging carriers.

*   Commercial Self-Maintained Users and Governments. Self-maintained user (SMU) and government customers include commercial entities such as major utilities and transportation companies, federal agencies and state and local governments.

*   Consumers. Consumers include customers that buy through any of our affinity partner relationships or directly from our consumer website, YourWirelessSource.comTM.

The Company measures segment performance based on segment gross profit. The segment operations develop their product offering, pricing and strategies, which are collaborative with one another and the centralized sales and marketing function. Therefore, the Company does not segregate assets, other than inventory, for internal reporting, evaluating performance or allocating capital. In addition, the Company has allocated all goodwill and indefinite lived intangible assets to the applicable segments (and reporting units within segments, where applicable) for purposes of its annual impairment tests. The Company's goodwill at June 26, 2011 relates to acquisitions within its network infrastructure line of business. Product delivery revenue and certain cost of sales expenses have been allocated to each segment based on a percentage of revenues and/or gross profit, as applicable.

Segment activity for the first quarter of fiscal years 2012 and 2011 is as follows:

(Amounts in thousands)	Network Infrastructure		Mobile Devices and Accessories		Installation, Test and Maintenance		Total
Three months ended June 26, 2011
Commercial revenues:
Public carriers and network operators	$	12,926	$	876	$	4,477	$	18,279
Resellers		22,152		86,300		1,841		110,293
SMUs and governments		23,032		4,404		3,987		31,423
Total commercial revenues		58,110		91,580		10,305		159,995
Consumer revenues		--		3,520		--		3,520
Total revenues	$	58,110	$	95,100	$	10,305	$	163,515
Commercial gross profit:
Public carriers and network operators	$	3,241	$	218	$	948	$	4,407
Resellers		6,585		14,716		528		21,829
SMUs and governments		7,353		1,165		1,015		9,533
Total commercial gross profit		17,179		16,099		2,491		35,769
Consumer gross profit		--		1,431		--		1,431
Total gross profit	$	17,179	$	17,530	$	2,491	$	37,200
Selling, general and administrative expenses								29,675
Income from operations								7,525
Interest, net								105
Income before provision for income taxes								7,420
Provision for income taxes								2,846
Net income							$	4,574
Product inventory	$	25,472	$	22,537	$	3,448	$	51,457
Three months ended June 27, 2010
Commercial revenues:
Public carriers and network operators	$	17,603	$	483	$	3,624	$	21,710
Resellers		20,777		67,997		1,907		90,681
SMUs and governments		16,342		4,779		4,670		25,791
Total commercial revenues		54,722		73,259		10,201		138,182
Consumer revenues		--		3,771		--		3,771
Total revenues	$	54,722	$	77,030	$	10,201	$	141,953
Commercial gross profit:
Public carriers and network operators	$	3,963	$	134	$	801	$	4,898
Resellers		5,679		12,780		468		18,927
SMUs and governments		4,455		1,254		1,515		7,224
Total commercial gross profit		14,097		14,168		2,784		31,049
Consumer gross profit		--		1,301		--		1,301
Total gross profit	$	14,097	$	15,469	$	2,784	$	32,350
Selling, general and administrative expenses								28,912
Income from operations								3,438
Interest, net								78
Income before provision for income taxes								3,360
Provision for income taxes								1,291
Net income							$	2,069
Product inventory	$	26,914	$	23,049	$	2,927	$	52,890