v3.25.4
Segment Reporting
 3 Months Ended
Dec. 28, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 3 - Segment Reporting

 

The Company’s two reportable segments, Applied Optics Center (“Applied Optex Center” or “AOC”) and Optex Systems – Richardson (“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 includes segment direct manufacturing and general and administrative costs but exclude profits that would apply to third party external customers.

 

The Chief Operating Decision Maker (CODM), which is our CEO, uses segment revenue, cost of sales and net operating income to assess the Company’s performance and allocation of resources. For the periods ended December 20, 2025 and three months ended December 29, 2024, the Company’s CODM was Danny Schoening, CEO. Danny Schoening resigned his position as CEO effective as of December 20, 2025, at which time Chad George assumed the position of CEO and CODM.

 

A summary of segment performance for the three months ended December 28, 2025 and December 29, 2024 is included in the table below:

 

                         
   (Thousands) 
   Three months ended 
   December 28, 2025   December 29, 2024 
  

Optex

Richardson

  

Applied Optics Center

Dallas

  

Other

(non-allocated costs and eliminations)

   Consolidated  

Optex

Richardson

  

Applied Optics Center

Dallas

  

Other

(non-allocated costs and eliminations)

   Consolidated 
                                 
Revenue from External Customers  $5,325    3,820    -    9,145   $3,415    4,783    -    8,198 
Intersegment Revenues   -    217    (217)   -    -    271    (271)   - 
Total Segment Revenue   5,325    4,037    (217)   9,145    3,415    5,054    (271)   8,198 
                                         
Total Cost of Sales   3,992    3,274    (217)   7,049    3,088    3,253    (271)   6,070 
                                         
Gross Profit   1,333    763    -    2,096    327    1,801    -    2,128 
Gross Margin %   25.0%   18.9%   -    22.9%   9.6%   35.6%   -    26.0%
                                         
General and Administrative Expense   1,355    380    212    1,947    940    180    92    1,212 
Segment Allocated G&A Expense   (415)   415    -    -    (328)   328    -    - 
Net General & Administrative Expense   940    795    212    1,947    612    508    92    1,212 
                                         
Operating Income (Loss)   393    (32)   (212)   149    (285)   1,293    (92)   916 
Operating Income (Loss) %   7.4%   (0.8)%   -    1.6%   (8.3)%   25.6%   -    11.2%
                                         

Interest Income (Expense)

   -    -    48    48    -    -    (13)   (13)
                                         
Income (Loss) before taxes  $393    (32)   (164)   

197

    (285)   1,293    (105)   903 
Income (Loss) before taxes %   7.4%   (0.8)%   -    2.2%   (8.3)%   25.6%   -    11.0%

 

 

Optex Richardson (OPX) – Richardson, Texas

 

Optex Richardson revenues are primarily in support of prime and subcontracted military customers. Approximately 94% of the Optex Richardson segment revenue is comprised of domestic military customers, and 6% is comprised of foreign military customers. For the three months ended December 28, 2025, Optex Richardson represented 58% of the Company’s total consolidated revenue and consisted of revenue from the U.S. Government (17%), and three major U.S. defense contractors representing 17%, 14% and 6%, of the Company’s consolidated revenue, respectively.

 

Optex Richardson is located in Richardson Texas, with leased premises consisting of approximately 49,100 square feet. As of December 28, 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 – Dallas, Texas

 

The Applied Optics Center serves primarily domestic U.S. customers. Sales to commercial customers represent 3% and military sales to prime and subcontracted customers represent 97% of the total segment revenue for the three months ended December 28, 2025. Approximately 95% of the AOC revenue was derived from external customers and approximately 5% was related to intersegment sales to Optex Richardson in support of military contracts. For the three months ended December 28, 2025, AOC represented 42% of the Company’s total consolidated revenue and consisted of revenue from four major defense contractors representing 12%, 7%, 6% and 5% of the Company’s consolidated revenue, respectively.

 

 The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 square feet of space. As of December 28, 2025, AOC operated with 45 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 December 28, 2025 
  

Optex Systems

Richardson

   Applied Optics Center Dallas  

Other

(non-allocated costs and intersegment eliminations)

  

Consolidated

Total

 
                 
Revenues from external customers  $5,325   $3,820   $-   $9,145 
Intersegment revenues   -    217    (217)   - 
Total revenue  $5,325   $4,037   $(217)  $9,145 
                     
Depreciation and amortization  $34   $56   $-   $90 
                     
Interest income  $-    -   $(48)  $(48)
                     
Income (loss) before taxes  $393   $(32)  $(164)  $197 
                     
Other significant noncash items:                    
Allocated home office expense  $(415)  $415   $-   $- 
Stock compensation expense  $-   $-   $212   $212 
Warranty expense  $-   $6   $-   $6 
                     
Segment assets  $22,279   $7,932   $-   $30,211 
Expenditures for segment assets  $24   $432   $-   $456 

 

  

Reportable Segment Financial Information

(thousands)

 
   As of and for the three months ended December 29, 2024 
   Optex Systems Richardson   Applied Optics Center Dallas   Other (non-allocated costs and intersegment eliminations)   Consolidated Total 
                 
Revenues from external customers  $3,415   $4,783   $-   $8,198 
Intersegment revenues   -    271    (271)   - 
Total revenue  $3,415   $5,054   $(271)  $8,198 
                     
Depreciation and amortization  $64   $65   $-   $129 
                     
Interest expense   -    -   $13   $13 
                     
Income (loss) before taxes  $(285)  $1,293   $(105)  $903 
                     
Other significant noncash items:                    
Allocated home office expense  $(328)  $328   $-   $- 
Stock compensation expense  $-   $-   $92   $92 
Warranty expense  $-   $(30)  $-   $(30)
                     
Segment assets  $16,881   $7,925   $-   $24,806 
Expenditures for segment assets  $74   $245   $-   $319