Note	8. Business Segments

Beginning in the second quarter of fiscal year 2012, the Company modified the structure of its internal organization. As a result of this modification, the Company concluded that changes to its reportable segments were warranted. The Company now evaluates its business in two segments – commercial and retail. The commercial segment includes: (1) public carriers, contractors and program managers that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; (2) private system operators and governments including commercial entities such as major utilities and transportation companies, federal agencies and state and local governments that run wireless networks for their own use; and (3) commercial dealers and resellers that sell, install and/or service cellular telephone, wireless networking, broadband and two-way radio communications equipment primarily for the enterprise market. The retail segment includes: (1) retailers, dealer agents and Tier 2 and 3 carriers; and (2) Tier 1 carriers (including the Company's largest customer, AT&T Mobility, Inc.).

The Company evaluates revenue, gross profit and net profit contribution for each of its segments. Net profit contribution is defined as gross profit less any expenses that can be directly attributed or allocated to each segment. This includes sales, product management, purchasing, credit and collections and distribution team expenses, plus freight out and internal and external marketing costs. Corporate support expenses, which are not allocated to each segment, includes administrative costs – finance, human resources, information technology, operating facility occupancy expenses, depreciation, amortization and interest, plus the company-wide pay on performance bonus expense.

The Company does not segregate assets by segments, for internal reporting, for evaluating performance or for allocating capital. The Company has, however, 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 December 25, 2011 relates to acquisitions within its commercial segment. Certain cost of sales and other applicable expenses have been allocated to each segment based on a percentage of revenues and/or gross profit, where appropriate.

The segment information for the periods ended December 26, 2010 below have been restated to reflect the current year segment presentation.

Segment activity for the third quarter and first nine months of fiscal years 2012 and 2011 is as follows (in thousands):

	Three months ended December 25, 2011
	Commercial Segment		Retail Segment		Total
Revenues
Public carrier, contractor & program manager market	$	18,573	$	--	$	18,573
Private system operator & government market		33,617		--		33,617
Commercial dealer & reseller market		32,724		--		32,724
Retailer, dealer agent & Tier 2/3 carrier market		--		33,404		33,404
Revenues, excluding Tier 1 carrier market		84,914		33,404		118,318
Tier 1 carrier market		--		107,932		107,932
Total revenues		84,914		141,336		226,250

Gross Profit
Public carrier, contractor & program manager market		4,336		--		4,336
Private system operator & government market		8,632		--		8,632
Commercial dealer & reseller market		8,784		--		8,784
Retailer, dealer agent & Tier 2/3 carrier market		--		7,233		7,233
Gross profit, excluding Tier 1 carrier market		21,752		7,233		28,985
Tier 1 carrier market		--		10,492		10,492
Total gross profit		21,752		17,725		39,477

Directly allocatable expenses		10,400		8,680		19,080
Segment net profit contribution	$	11,352	$	9,045	$	20,397
Corporate support expenses						12,590
Income before provision for income taxes					$	7,807

	Nine months ended December 25, 2011
	Commercial Segment		Retail Segment		Total
Revenues
Public carrier, contractor & program manager market	$	56,804	$	--	$	56,804
Private system operator & government market		96,158		--		96,158
Commercial dealer & reseller market		92,861		--		92,861
Retailer, dealer agent & Tier 2/3 carrier market		--		88,946		88,946
Revenues, excluding Tier 1 carrier market		245,823		88,946		334,769
Tier 1 carrier market		--		203,834		203,834
Total revenues		245,823		292,780		538,603

Gross Profit
Public carrier, contractor & program manager market		12,995		--		12,995
Private system operator & government market		26,764		--		26,764
Commercial dealer & reseller market		25,896		--		25,896
Retailer, dealer agent & Tier 2/3 carrier market		--		19,228		19,228
Gross profit, excluding Tier 1 carrier market		65,655		19,228		84,883
Tier 1 carrier market		--		25,784		25,784
Total gross profit		65,655		45,012		110,667

Directly allocatable expenses		30,747		22,197		52,944
Segment net profit contribution	$	34,908	$	22,815	$	57,723
Corporate support expenses						36,739
Income before provision for income taxes					$	20,984

	Three months ended December 26, 2010
	Commercial Segment		Retail Segment		Total
Revenues
Public carrier, contractor & program manager market	$	23,546	$	--	$	23,546
Private system operator & government market		30,966		--		30,966
Commercial dealer & reseller market		28,553		--		28,553
Retailer, dealer agent & Tier 2/3 carrier market		--		28,963		28,963
Revenues, excluding Tier 1 carrier market		83,065		28,963		112,028
Tier 1 carrier market		--		55,912		55,912
Total revenues		83,065		84,875		167,940

Gross Profit
Public carrier, contractor & program manager market		5,497		--		5,497
Private system operator & government market		7,777		--		7,777
Commercial dealer & reseller market		7,931		--		7,931
Retailer, dealer agent & Tier 2/3 carrier market		--		5,301		5,301
Gross profit, excluding Tier 1 carrier market		21,205		5,301		26,506
Tier 1 carrier market		--		7,297		7,297
Total gross profit		21,205		12,598		33,803

Directly allocatable expenses		12,010		8,081		20,091
Segment net profit contribution	$	9,195	$	4,517	$	13,712
Corporate support expenses						9,494
Income before provision for income taxes					$	4,218

	Nine months ended December 26, 2010
	Commercial Segment		Retail Segment		Total
Revenues
Public carrier, contractor & program manager market	$	69,533	$	--	$	69,533
Private system operator & government market		81,633		--		81,633
Commercial dealer & reseller market		88,298		--		88,298
Retailer, dealer agent & Tier 2/3 carrier market		--		80,046		80,046
Revenues, excluding Tier 1 carrier market		239,464		80,046		319,510
Tier 1 carrier market		--		155,409		155,409
Total revenues		239,464		235,455		474,919

Gross Profit
Public carrier, contractor & program manager market		16,085	$	--		16,085
Private system operator & government market		21,500		--		21,500
Commercial dealer & reseller market		23,787		--		23,787
Retailer, dealer agent & Tier 2/3 carrier market		--		16,579		16,579
Gross profit, excluding Tier 1 carrier market		61,372		16,579		77,951
Tier 1 carrier market		--		24,972		24,972
Total gross profit		61,372		41,551		102,923

Directly allocatable expenses		35,828		24,576		60,404
Segment net profit contribution	$	25,544	$	16,975	$	42,519
Corporate support expenses						29,504
Income before provision for income taxes					$	13,015

The Company also reviews revenue and gross profit by its four product categories:

Base station infrastructure products are used to build, repair and upgrade wireless telecommunications. Products include base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas. Our base station infrastructure service offering includes connector installation, custom jumper assembly, site kitting and logistics integration.

Network systems products are used to build and upgrade computing and Internet networks. Products include fixed and mobile broadband equipment, wireless networking, filtering systems, two-way radios and security and surveillance products. This product category also includes training classes, technical support and engineering design services.

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.

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. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including private label Internet sites, complement our mobile devices and accessory product offering.

Base station infrastructure, network systems and installation, test and maintenance products are primarily sold into the commercial segment, while mobile device and accessories products are primarily sold into the retail segment.

Supplemental revenue and gross profit information by product category for the third quarter and first nine months of fiscal years 2012 and 2011 are as follows (in thousands):

	Three months ended December 25, 2011		Nine months ended December 25, 2011
Revenues
Base station infrastructure	$	50,237	$	146,909
Network systems		18,861		57,474
Installation, test and maintenance		12,112		34,188
Mobile device accessories		145,040		300,032
Total revenues		226,250		538,603

Gross Profit
Base station infrastructure		15,504		45,407
Network systems		4,073		11,718
Installation, test and maintenance		2,736		7,655
Mobile device accessories		17,164		45,887
Total gross profit		39,477		110,667

	Three months ended December 26, 2010		Nine months ended December 26, 2010
Revenues
Base station infrastructure	$	48,571	$	148,313
Network systems		16,627		49,320
Installation, test and maintenance		14,393		34,629
Mobile device accessories		88,349		242,657
Total revenues		167,940		474,919

Gross Profit
Base station infrastructure		14,171		41,570
Network systems		3,440		8,612
Installation, test and maintenance		2,867		8,293
Mobile device accessories		13,325		44,448
Total gross profit		33,803		102,923