Note 7. Business Segments

The Company evaluates its business within two segments: commercial and retail. The commercial segment consists of the following customer markets: (1) public carriers, that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; and (2) value-added resellers and integrators, which results from the consolidation of our previously identified value-added resellers, government channels and private system operator markets, and reflects implementation over the 2019 fiscal year of an enhanced go-to-market strategy. This go-to-market strategy and the corresponding consolidation of these customer markets is designed to increase sales opportunities across the consolidated markets, as well as to provide better coverage to customers and to better align territories with supplier partners.

The retail segment consists of the retail market which includes retailers, independent dealer agents and carriers.

To provide investors with better visibility, the Company also discloses revenue and gross profit by its four product categories:

Base Station Infrastructure - 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. Base station infrastructure service offerings include connector installation, custom jumper assembly, site kitting and logistics integration.

Network Systems - 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 - 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 - 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 the segment level. 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 third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands):


	Three Months Ended
	December 29, 2019						December 30, 2018
	Commercial		Retail				Commercial		Retail
	Segment		Segment		Total		Segment		Segment		Total
Revenues
Public carrier	$	37,793	$	—	$	37,793	$	33,593	$	—	$	33,593
Value-added resellers and integrators		63,051		—		63,051		65,373		—		65,373
Retail		—		38,734		38,734		—		53,329		53,329
Total revenues	$	100,844	$	38,734	$	139,578	$	98,966	$	53,329	$	152,295

Gross Profit
Public carrier	$	4,508	$	—	$	4,508	$	4,583	$	—	$	4,583
Value-added resellers and integrators		15,139		—		15,139		16,013		—		16,013
Retail		—		3,427		3,427		—		10,403		10,403
Total gross profit	$	19,647	$	3,427	$	23,074	$	20,596	$	10,403	$	30,999

Directly allocable expenses		7,620		3,273		10,893		8,079		4,038		12,117
Segment net profit contribution	$	12,027	$	154		12,181	$	12,517	$	6,365		18,882
Corporate support expenses						18,523						15,626
Income before provision for income taxes					$	(6,342)					$	3,256


	Nine Months Ended
	December 29, 2019						December 30, 2018
	Commercial		Retail				Commercial		Retail
	Segment		Segment		Total		Segment		Segment		Total
Revenues
Public carrier	$	110,448	$	—	$	110,448	$	113,647	$	—	$	113,647
Value-added resellers and integrators		192,727		—		192,727		199,570		—		199,570
Retail		—		108,943		108,943		—		148,633		148,633
Total revenues	$	303,175	$	108,943	$	412,118	$	313,217	$	148,633	$	461,850

Gross Profit
Public carrier	$	13,621	$	—	$	13,621	$	14,989	$	—	$	14,989
Value-added resellers and integrators		46,432		—		46,432		48,842		—		48,842
Retail		—		14,604		14,604		—		29,261		29,261
Total gross profit	$	60,053	$	14,604	$	74,657	$	63,831	$	29,261	$	93,092

Directly allocable expenses		25,058		9,299		34,357		24,722		12,391		37,113
Segment net profit contribution	$	34,995	$	5,305		40,300	$	39,109	$	16,870		55,979
Corporate support expenses						49,933						49,488
Income before provision for income taxes					$	(9,633)					$	6,491

Supplemental revenue and gross profit information by product category for the third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands):


	Three Months Ended
	December 29, 2019		December 30, 2018
Revenues
Base station infrastructure	$	69,688	$	67,988
Network systems		21,564		21,477
Installation, test and maintenance		7,772		8,306
Mobile device accessories		40,554		54,524
Total revenues	$	139,578	$	152,295

Gross Profit
Base station infrastructure	$	14,808	$	14,822
Network systems		3,055		3,453
Installation, test and maintenance		1,410		1,623
Mobile device accessories		3,801		11,101
Total gross profit	$	23,074	$	30,999




	Nine Months Ended
	December 29, 2019		December 30, 2018
Revenues
Base station infrastructure	$	210,230	$	217,817
Network systems		66,971		66,818
Installation, test and maintenance		21,037		24,628
Mobile device accessories		113,880		152,587
Total revenues	$	412,118	$	461,850

Gross Profit
Base station infrastructure	$	43,894	$	46,072
Network systems		10,445		10,677
Installation, test and maintenance		3,723		4,899
Mobile device accessories		16,595		31,444
Total gross profit	$	74,657	$	93,092