Operating Segment

12 Months Ended

Mar. 26, 2017

Operating Segment

Operating Segment

Note 10. Operating Segment

The Company evaluates its business as one segment, as the chief operating decision maker 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 markets: (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 major utilities and transportation companies that run wireless networks for their own use; (4) 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; and (5) retailers, independent dealer agents and carriers. Beginning in the third quarter of fiscal year 2015, the Company began reporting private system operators and government system operators as two separate markets. All prior periods have been restated to reflect this change.

The Company evaluates revenue, gross profit and net profit contribution, and income before provision for income taxes in the aggregate. 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 based on a percentage of revenues and/or gross profit, where appropriate.

Market activity for the fiscal years ended 2017, 2016 and 2015 is as follows (in thousands):

	March 26, 2017		March 27, 2016		March 29, 2015
Revenues
Public Carriers, Contractors & Program Managers	$	82,015	$	89,171	$	127,426
Government System Operators		36,676		33,009		31,495
Private System Operators		93,869		85,563		86,725
Commercial Dealers & Resellers		126,326		129,986		134,195
Retailer, Independent Dealer Agents & Carriers		194,409		192,953		169,778
Total revenues	$	533,295	$	530,682	$	549,619
Gross Profit
Public Carriers, Contractors & Program Managers	$	13,707	$	15,155	$	20,915
Government System Operators		8,235		7,713		7,535
Private System Operators		21,648		20,601		20,866
Commercial Dealers & Resellers		34,289		33,781		34,948
Retailer, Independent Dealer Agents & Carriers		33,889		34,716		33,375
Total gross profit	$	111,768	$	111,966	$	117,639

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, distributed antenna 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.

Supplemental revenue and gross profit information by product category for the fiscal years 2017, 2016 and 2015 are as follows (in thousands):

	March 26, 2017		March 27, 2016		March 29, 2015
Revenues
Base station infrastructure	$	209,869	$	206,604	$	224,135
Network systems		87,222		83,480		96,399
Installation, test and maintenance		31,851		34,936		41,790
Mobile device accessories		204,353		205,662		187,295
Total revenues	$	533,295	$	530,682	$	549,619
Gross Profit
Base station infrastructure		54,280		51,610		55,732
Network systems		11,897		12,893		13,549
Installation, test and maintenance		5,921		6,607		8,351
Mobile device accessories		39,670		40,856		40,007
Total gross profit	$	111,768	$	111,966	$	117,639