v3.25.2
Segment Reporting
 9 Months Ended
Jun. 29, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 3 - Segment Reporting

 

The Company’s two reportable segments, Applied Optics Center and Optex Richardson, are strategic businesses offering similar products to similar markets and customers; however, they are operated and managed separately due to differences in manufacturing technology, equipment, geographic location, and specific product mix. Applied Optics Center was acquired as a unit, and management at the time of the acquisition was retained.

 

The Applied Optics Center segment also serves as the key supplier of laser coated filters used in the production of periscope assemblies for the Optex Richardson segment. Intersegment sales and transfers are accounted for at annually agreed to pricing rates based on estimated segment product cost, which include segment direct manufacturing and general and administrative costs but exclude profits that would apply to third party external customers.

 

Optex Richardson – Richardson, Texas

 

Optex Richardson revenues are primarily in support of prime and subcontracted military customers. Military sales to prime and subcontracted customers represented approximately 100% of the external segment revenue for the nine months ended June 29, 2025. The Optex Richardson segment revenue is comprised of approximately 89% domestic military customers and 11% foreign military customers. For the nine months ended June 29, 2025, Optex Richardson represented 55% of the Company’s total consolidated revenue and consisted of revenue from the U.S. government (25%), two major U.S. defense contractors (11%) and (9%), and all other customers (10%).

 

Optex Richardson is located in Richardson Texas, with leased premises consisting of approximately 49,100 square feet. As of June 29, 2025, the Richardson facility operated with 91 full-time equivalent employees in a single shift operation. The facilities at Optex Richardson serve as the home office for both the Optex Richardson and Applied Optics Center segments.

 

Applied Optics Center (AOC) – Dallas, Texas

 

The Applied Optics Center serves primarily domestic U.S. customers. Sales to commercial customers represented approximately 11% and military sales to prime and subcontracted customers represented approximately 89% of the external segment revenue for the nine months ended June 29, 2025. Approximately 94% of the AOC revenue was derived from external customers and approximately 6% was related to intersegment sales to Optex Richardson in support of military contracts. For the nine months ended June 29, 2025, AOC represented 45% of the Company’s total consolidated revenue and consisted of revenue from the U.S. Government (7%), three major defense contractors (7%), (6%), and (4%), and all other customers (21%).

 

The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 square feet of space. As of June 29, 2025, AOC operated with 49 full-time equivalent employees in a single shift operation.

 

 

The financial tables below present information on the reportable segments’ profit or loss for each period, as well as segment assets as of each period end. The Company does not allocate interest expense, income taxes or unusual items to segments.

 

 

  

Reportable Segment Financial Information

(thousands)

 
   As of and for the three months ended June 29, 2025 
  

Optex

Richardson

  

Applied Optics

Center

Dallas

  

Other

(non-

allocated

costs and

intersegment

eliminations)

   Consolidated
Total		 
                 
Revenues from external customers  $6,838   $4,272   $-   $11,110 
Intersegment revenues   -    325    (325)   - 
Total revenue  $6,838   $4,597   $(325)  $11,110 
                     
Interest (income) expense  $-   $-   $-   $- 
                     
Depreciation and amortization  $72   $59   $-   $131 
                     
Income before taxes  $1,103   $891   $(83)  $1,911 
                     
Other significant noncash items:                    
Allocated home office expense  $(328)  $328   $-   $- 
Stock compensation expense  $-   $-   $83   $83 
Warranty expense  $-   $68   $-   $68 
                     
Segment assets  $20,626   $8,554   $-   $29,180 
Expenditures for segment assets  $-   $-   $-   $- 

 

  

Reportable Segment Financial Information

(thousands)

 
   As of and for the three months ended June 30, 2024 
  

Optex

Richardson

  

Applied Optics Center

Dallas

  

Other

(non-

allocated

costs and intersegment eliminations)

  

Consolidated

Total

 
                 
Revenues from external customers  $4,675   $4,385   $-   $9,060 
Intersegment revenues   -    282    (282)   - 
Total revenue  $4,675   $4,667   $(282)  $9,060 
                     
Interest expense  $-   $-   $17   $17 
                     
Depreciation and amortization  $54   $78   $-   $132 
                     
Income (loss) before taxes  $442   $1,263   $(107)  $1,598 
                     
Other significant noncash items:                    
Allocated home office expense  $(339)  $339   $-   $- 
Stock compensation expense  $-   $-   $90   $90 
Warranty expense  $-   $(18)  $-   $(18)
                     
Segment assets  $16,449   $8,413   $-   $24,862 
Expenditures for segment assets  $159   $147   $-   $306 

 

 

  

Reportable Segment Financial Information

(thousands)

 
   As of and for the nine months ended June 29, 2025 
  

Optex

Richardson

  

Applied Optics Center

Dallas

  

Other

(non-

allocated

costs and intersegment eliminations)

  

Consolidated

Total

 
                 
Revenues from external customers  $16,572   $13,466   $-   $30,038 
Intersegment revenues   -    917    (917)   - 
Total revenue  $16,572   $14,383   $(917)  $30,038 
                     
Interest expense  $-   $-   $12   $12 
                     
Depreciation and amortization  $203   $183   $-   $386 
                     
Income before taxes  $1,930   $3,382   $(259)  $5,053 
                     
Other significant noncash items:                    
Allocated home office expense  $(983)  $983   $-   $- 
Stock compensation expense  $-   $-   $247   $247 
Warranty expense  $-   $121   $-   $121 
                     
Segment assets  $20,626   $8,554   $-   $29,180 
Expenditures for segment assets  $218   $245   $-   $463 

 

  

Reportable Segment Financial Information

(thousands)

 
   As of and for the nine months ended June 30, 2024 
  

Optex

Richardson

  

Applied

Optics

Center

Dallas

  

Other

(non-

allocated

costs and intersegment eliminations)

  

Consolidated

Total

 
                 
Revenues from external customers  $12,344   $12,208   $-   $24,552 
Intersegment revenues   -    700    (700)   - 
Total revenue  $12,344   $12,908   $(700)  $24,552 
                     
Interest expense  $-   $-   $32   $32 
                     
Depreciation and amortization  $103   $238   $-   $341 
                     
Income (loss) before taxes  $850   $3,033   $(392)  $3,491 
                     
Other significant noncash items:                    
Allocated home office expense  $(1,019)  $1,019   $-   $- 
Stock compensation expense  $-   $-   $360   $360 
Warranty expense  $17   $(4)  $-   $13 
                     
Segment assets  $16,449   $8,413   $-   $24,862 
Expenditures for segment assets  $1,331   $172   $-   $1,503