Business Segments

12 Months Ended

Mar. 31, 2013

Business Segments [Abstract]

Business Segments

Note 9. Business Segments

The Company 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 carriers; and (2) our Major 3PL relationship. The market within the Retail Segment formerly known as "Retailer, dealer agent and Tier 2/3 carrier" market, is changed to "Retailer, dealer agent and carrier" market.  The market within the Retail Segment formerly known as "Tier 1 Carriers" market is changed to "Major 3PL relationship". These changes result in the reclassification of certain revenue and gross profit amounts from the former "Tier 1 Carriers" market to the new "Retailer, dealer agent and carrier" market, and allow for isolation of the reporting for the Company's transitioning Tier 1 carrier business relationship under the new "Major 3PL relationship" heading.  All prior periods have been restated to reflect this change.  The Company's segments, known as "Commercial" and "Retail", and the total revenue and gross profit within those segments, remain unchanged.

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 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.

Segment activity for the fiscal years ended 2013, 2012 and 2011 is as follows (in thousands):

	Year ended March 31, 2013
	Commercial Segment		Retail Segment		Total
Revenues
Public Carriers, Contractors & Program Managers	$	111,146	$	--	$	111,146
Private & Government System Operators		121,313		--		121,313
Commercial Dealers & Resellers		138,737		--		138,737
Retailer, Independent Dealer Agents & Carriers		--		167,895		167,895
Revenue, excluding Major 3PL relationship		371,196		167,895		539,091
Major 3PL relationship		--		213,474		213,474
Total revenues		371,196		381,369		752,565
Gross Profit
Public Carriers, Contractors & Program Managers		24,183		--		24,183
Private & Government System Operators		33,596		--		33,596
Commercial Dealers & Resellers		38,345		--		38,345
Retailer, Independent Dealer Agents & Carriers		--		35,903		35,903
Gross profit, excluding Major 3PL relationship		96,124		35,903		132,027
Major 3PL relationship		--		15,012		15,012
Total gross profit		96,124		50,915		147,039
Directly allocatable expenses		42,821		27,701		70,522
Segment net profit contribution	$	53,303	$	23,214		76,517
Corporate support expenses						47,523
Income before provision for income taxes					$	28,994

	Year ended April 1, 2012
	Commercial Segment		Retail Segment		Total
Revenues
Public Carriers, Contractors & Program Managers	$	73,824	$	--	$	73,824
Private & Government System Operators		129,129		--		129,129
Commercial Dealers & Resellers		125,431		--		125,431
Retailer, Independent Dealer Agents & Carriers		--		153,803		153,803
Revenue, excluding Major 3PL relationship		328,384		153,803		482,187
Major 3PL relationship		--		251,203		251,203
Total revenues		328,384		405,006		733,390
Gross Profit
Public Carriers, Contractors & Program Managers		17,101		--		17,101
Private & Government System Operators		35,860		--		35,860
Commercial Dealers & Resellers		35,393		--		35,393
Retailer, Independent Dealer Agents & Carriers		--		33,421		33,421
Gross profit, excluding Major 3PL relationship		88,354		33,421		121,775
Major 3PL relationship		--		26,881		26,881
Total gross profit		88,354		60,302		148,656
Directly allocatable expenses		41,490		29,963		71,453
Segment net profit contribution	$	46,864	$	30,339		77,203
Corporate support expenses						50,492
Income before provision for income taxes					$	26,711

	Year ended March 27, 2011
	Commercial Segment		Retail Segment		Total
Revenues
Public Carriers, Contractors & Program Managers	$	87,010	$	--	$	87,010
Private & Government System Operators		108,520		--		108,520
Commercial Dealers & Resellers		117,213		--		117,213
Retailer, Independent Dealer Agents & Carriers		--		137,676		137,676
Revenue, excluding Major 3PL relationship		312,743		137,676		450,419
Major 3PL relationship		--		154,800		154,800
Total revenues		312,743		292,476		605,219
Gross Profit
Public Carriers, Contractors & Program Managers		20,139		--		20,139
Private & Government System Operators		28,978		--		28,978
Commercial Dealers & Resellers		31,717		--		31,717
Retailer, Independent Dealer Agents & Carriers		--		29,947		29,947
Gross profit, excluding Major 3PL relationship		80,834		29,947		110,781
Major 3PL relationship		--		22,500		22,500
Total gross profit		80,834		52,447		133,281
Directly allocatable expenses		47,096		31,480		78,576
Segment net profit contribution	$	33,738	$	20,967		54,705
Corporate support expenses						39,150
Income before provision for income taxes					$	15,555

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, and maintain 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 fiscal years 2013, 2012 and 2011 are as follows (in thousands):

	March 31, 2013		April 1, 2012		March 27, 2011
Revenues
Base station infrastructure	$	227,510	$	196,611	$	192,587
Network systems		78,989		75,150		65,180
Installation, test and maintenance		47,766		44,507		46,242
Mobile device accessories		398,300		417,122		301,210
Total revenues		752,565		733,390		605,219
Gross Profit
Base station infrastructure		65,472		61,767		54,513
Network systems		14,887		15,817		12,108
Installation, test and maintenance		11,151		10,365		10,744
Mobile device accessories		55,529		60,707		55,916
Total gross profit	$	147,039	$	148,656	$	133,281