Business Segments

6 Months Ended

Sep. 27, 2015

Operating Segments

Business Segments

Note 8. 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 thischange.

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 systems. 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 second quarter and first six months of fiscal years 2016 and 2015 are as follows (in thousands):

	Three Months Ended
	September 27, 2015		September 28, 2014
Revenues
Public Carriers, Contractors & Program Managers	$	25,803	$	40,853
Government System Operators		8,782		8,154
Private System Operators		23,056		21,292
Commercial Dealers & Resellers		34,055		36,780
Retailer, Independent Dealer Agents & Carriers		50,657		41,443
Total revenues	$	142,353	$	148,522
Gross Profit
Public Carriers, Contractors & Program Managers	$	5,036	$	7,347
Government System Operators		2,293		2,282
Private System Operators		6,065		5,800
Commercial Dealers & Resellers		9,566		10,289
Retailer, Independent Dealer Agents & Carriers		10,902		9,718
Total gross profit	$	33,862	$	35,436
	Six Months Ended
	September 27, 2015		September 28, 2014
Revenues
Public Carriers, Contractors & Program Managers	$	50,954	$	82,271
Government System Operators		16,665		16,167
Private System Operators		45,078		42,283
Commercial Dealers & Resellers		67,543		75,064
Retailer, Independent Dealer Agents & Carriers		96,777		85,683
Total revenues	$	277,017	$	301,468
Gross Profit
Public Carriers, Contractors & Program Managers	$	10,089	$	14,540
Government System Operators		4,422		4,440
Private System Operators		12,228		11,555
Commercial Dealers & Resellers		19,098		20,926
Retailer, Independent Dealer Agents & Carriers		20,261		19,224
Total gross profit	$	66,098	$	70,685

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

	Three months ended		Three months ended
	September 27, 2015		September 28, 2014
Revenues
Base station infrastructure	$	56,275	$	64,129
Network systems		22,425		27,496
Installation, test and maintenance		9,012		10,663
Mobile device accessories		54,641		46,234
Total revenues	$	142,353	$	148,522
Gross Profit
Base station infrastructure	$	14,938	$	16,817
Network systems		3,943		4,174
Installation, test and maintenance		2,081		2,284
Mobile device accessories		12,900		12,161
Total gross profit	$	33,862	$	35,436
	Six months ended		Six months ended
	September 27, 2015		September 28, 2014
Revenues
Base station infrastructure	$	110,098	$	127,016
Network systems		43,619		58,040
Installation, test and maintenance		17,630		21,585
Mobile device accessories		105,670		94,827
Total revenues	$	277,017	$	301,468
Gross Profit
Base station infrastructure	$	30,257	$	33,892
Network systems		7,611		8,859
Installation, test and maintenance		3,926		4,817
Mobile device accessories		24,304		23,117
Total gross profit	$	66,098	$	70,685