Business Segments

3 Months Ended

Jun. 28, 2015

Business Segments

Operating Segments

Note 7. Business Segments

The Company evaluates its business as one segment, as the chief operating decision maker assesses performance and allocates resources on a consolidated basis. 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) government system operators including federal agencies and state and local governments that run wireless networks for their own use;  (3) private system operators including commercial entities such as enterprise customers, major utilities and transportation companies; (4) commercial 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 (5) retailers, independent dealer agents and carriers. Beginning in the third quarter of fiscal 2015, the Company began reporting private system operators and government system operators as two separate market units. All prior periods have been restated to reflect this change.

To provide investors with better visibility, the Company also discloses 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, distributed antenna systems (DAS), 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.

The Company evaluates revenue, gross profit, and income before provision for income taxes at a consolidated level.  Certain cost of sales and other applicable expenses have been allocated to each market unit or product type based on a percentage of revenues and/or gross profit, where appropriate.

Market unit activity for the first quarter of fiscal years 2016 and 2015 are as follows (in thousands):

	Three Months Ended
	June 28, 2015		June 29, 2014
Revenues
Public Carriers, Contractors & Program Managers	$	25,151	$	41,418
Government System Operators		7,883		8,013
Private System Operators		22,022		20,991
Commercial Dealers & Resellers		33,488		38,284
Retailer, Independent Dealer Agents & Carriers		46,120		44,240
Total revenues	$	134,664	$	152,946
Gross Profit
Public Carriers, Contractors & Program Managers	$	5,053	$	7,193
Government System Operators		2,129		2,158
Private System Operators		6,163		5,755
Commercial Dealers & Resellers		9,532		10,637
Retailer, Independent Dealer Agents & Carriers		9,359		9,506
Total gross profit	$	32,236	$	35,249

Supplemental revenue and gross profit information by product category for the first quarter of fiscal years 2016 and 2015 are as follows (in thousands):

	Three months ended		Three months ended
	June 28, 2015		June 29, 2014
Revenues
Base station infrastructure	$	53,823	$	62,887
Network systems		21,194		30,544
Installation, test and maintenance		8,618		10,922
Mobile device accessories		51,029		48,593
Total revenues	$	134,664	$	152,946
Gross Profit
Base station infrastructure	$	15,319	$	17,075
Network systems		3,668		4,685
Installation, test and maintenance		1,845		2,533
Mobile device accessories		11,404		10,956
Total gross profit	$	32,236	$	35,249