Business Segments

3 Months Ended

Jun. 30, 2013

Business Segments [Abstract]

Business Segments

Note 6. Business Segments

Beginning in the first quarter of fiscal year 2014, the Company modified the structure of its internal organization, so that all sales operations report to one individual  and to streamline its operations. Each of the Company's products lines are sold to each of its customer markets; assets are not segmented; and support resources are shared between all sales teams.  As a result of this modification, the Company concluded that changes to its reportable segments were warranted. The Company now evaluates its business in one segment as the chief decision maker primarily reviews results as one unit. However, to provide investors with increased visibility into the markets it serves, the Company also reports revenue and gross profit by the following customer market units:  (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; (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;  (4) retailers, dealer agents and carriers; and (5) our Major 3PL relationship that was fully transitioned at the end of fiscal year 2013. All prior periods have been restated to reflect this change.

The Company evaluates revenue, gross profit, net profit contribution and income before provision for income taxes.  Net profit contribution is defined as gross profit less any expenses that can be directly attributed.  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 include administrative costs – finance, human resources, information technology, operating facility occupancy expenses, depreciation, amortization and interest, plus the company-wide pay on performance bonus expense.

Certain cost of sales and other applicable expenses have been allocated to each market unit based on a percentage of revenues and/or gross profit, where appropriate.

Market unit activity for the first quarter of fiscal years 2014 and 2013 is as follows (in thousands):

	Three Months Ended
	June 30, 2013		July 1, 2012
Revenues
Public Carriers, Contractors & Program Managers	$	37,383	$	20,018
Private & Government System Operators		27,893		29,600
Commercial Dealers & Resellers		36,044		31,608
Retailer, Independent Dealer Agents & Carriers		42,789		41,190
Revenue, excluding Major 3PL relationship		144,109		122,416
Major 3PL relationship		--		70,002
Total revenues		144,109		192,418
Gross Profit
Public Carriers, Contractors & Program Managers		7,894		4,458
Private & Government System Operators		7,801		8,153
Commercial Dealers & Resellers		10,247		8,798
Retailer, Independent Dealer Agents & Carriers		9,496		8,686
Gross profit, excluding Major 3PL relationship		35,438		30,095
Major 3PL relationship		--		5,398
Total gross profit		35,438		35,493
Direct expenses		17,615		17,257
Segment net profit contribution		17,823		18,236
Corporate support expenses		10,914		11,363
Income before provision for income taxes	$	6,909	$	6,873

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 device accessories 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.

Supplemental revenue and gross profit information by product category for the first quarter of fiscal years 2014 and 2013 are as follows (in thousands):

	Three months ended June 30, 2013		Three months ended July 1, 2012
Revenues
Base station infrastructure	$	69,541	$	49,146
Network systems		19,063		17,736
Installation, test and maintenance		9,762		10,640
Mobile device accessories		45,743		114,896
Total revenues	$	144,109		192,418
Gross Profit
Base station infrastructure	$	18,889	$	14,404
Network systems		3,818		3,658
Installation, test and maintenance		2,350		2,540
Mobile device accessories		10,381		14,891
Total gross profit	$	35,438	$	35,493