v3.26.1
Segment Information
 12 Months Ended
Apr. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block]

13. Segment Information

 

The Company operates under two reportable segments based on the geographic locations of its subsidiaries:

 

(1)

FEI-NY – operates out of New York and its operations consist principally of precision time and frequency control products used in three principal markets - communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.

 

The FEI-NY segment also includes the operations of the Company’s wholly-owned subsidiary, FEI-Elcom. FEI-Elcom, in addition to its own product line, provides design and technical support for the FEI-NY segment’s satellite business. Effective as of April 30, 2026, FEI-Elcom was converted into a Delaware limited liability company. The ongoing business operations of FEI-Elcom will remain within the FEI-NY reporting segment.

 

(2) FEI-Zyfer – operates out of California and its products incorporate Global Positioning System (GPS) technologies into systems and subsystems for secure communications, both government and commercial, and other locator applications. This segment also provides sales and support for the Company’s wireline telecommunications family of products, including US5G, which are sold in the U.S. market.

 

The Company measures segment performance based on the operating income generated by the geographic location of its subsidiaries rather than on the specific types of customers or end-users. Consequently, the Company determined that the segments indicated above most appropriately reflect the way the Company’s management views the business.

 

The accounting policies of the two segments are the same as those described in Note 1. Our Chief Executive Officer (“CEO”) serves as our CODM who evaluates the segment performance and allocates resources to them based on operating income which is defined as income before investment income, interest expense, other expenses, and income taxes. Operating income by segment is used to monitor segment results compared to prior periods to determine areas of business process improvements, profitable market opportunities, forecasted results, and the annual plan. All acquired assets, including intangible assets, are included in the assets of both reporting segments.

The tables below present segment revenue, significant segment expenses which consist of segment cost of revenue and segment research and development costs, and segment operating (loss) income for each reportable segment and on a consolidated basis as reported in the consolidated statements of operations for the fiscal years ended April 30, 2026 and 2025 (in thousands):

 

   For the Fiscal Years Ended April 30, 
   2026   2025 
Revenues:        
FEI-NY  $45,651   $53,269 
FEI-Zyfer   21,731    18,660 
Less intersegment revenues   (4,155)   (2,118)
Consolidated revenues  $63,227   $69,811 
           
Cost of revenues:          
FEI-NY  $35,816   $29,331 
FEI-Zyfer   12,497    12,598 
Less intersegment cost of revenues   (3,482)   (2,215)
Consolidated cost of revenues  $44,831   $39,714 
           
Research and development expenses:          
FEI-NY  $3,800   $3,374 
FEI-Zyfer   2,194    2,702 
Consolidated research and development expenses  $5,994   $6,076 
           
Operating (loss) income:          
FEI-NY  $(5,442)  $11,514 
FEI-Zyfer   3,813    743 
Less intersegment   (673)   98 
Corporate   (699)   (623)
Consolidated operating (loss) income  $(3,001)  $11,732 

 

Other segment items included in the determination of operating (loss) income includes SG&A of $11.5 million and $9.1 million for the fiscal years ended April 30, 2026 and 2025, respectively, for the FEI-NY segment, and $3.2 million and $2.6 million for the fiscal years ended April 30, 2026 and 2025, respectively, for the FEI-Zyfer segment.

The tables below present the identifiable assets of each reportable segment and on a consolidated basis as reported in the consolidated balance sheets as of April 30, 2026 and 2025 and the depreciation and amortization charges related to these identifiable assets for the fiscal years then ended (in thousands):

 

   April 30,
2026		   April 30,
2025		 
         
Identifiable assets:        
FEI-NY  $40,849   $39,125 
FEI-Zyfer   23,759    23,865 
less intersegment balances   (814)   (140)
Corporate   26,912    30,887 
Consolidated identifiable assets  $90,706   $93,737 

 

   For the Fiscal Years Ended
April 30,		 
   2026   2025 
         
Depreciation and amortization:        
FEI-NY  $1,799   $1,932 
FEI-Zyfer   94    123 
Corporate   -    - 
Consolidated depreciation and amortization expense  $1,893   $2,055 

 

Major Customers

 

The Company’s products are sold to both commercial and governmental customers. For the fiscal years ended April 30, 2026 and 2025, approximately 91% and 94%, respectively, of the Company’s sales were made under contracts to the U.S. Government or subcontracts for U.S. Government end-use.

 

In the fiscal year ended April 30, 2026, revenues from four customers of the FEI-NY segment, which each accounted for more than 10% of that segment’s revenues, were $7.0 million, $5.5 million, $5.3 million, and $5.1 million. In the fiscal year ended April 30, 2025, revenues from one customer of the FEI-NY segment, which accounted for more than 10% of that segment’s revenues, was $26.9 million. In the FEI-Zyfer segment, revenues from one customer, which accounted for more than 10% of that segment’s revenues, was $8.1 million in the fiscal year ended April 30, 2026. In the FEI-Zyfer segment, revenues from two customers, which each accounted for more than 10% of that segment’s revenues, were $2.9 million and $3.4 million in the fiscal year ended April 30, 2025.

 

The loss by the Company of any one of these customers would have a material adverse effect on the Company’s business. The Company believes its relationship with these customers is mutually satisfactory. Sales to the major customers referenced above can include commercial and governmental end users.

Foreign Sales

 

Revenues in each of the Company’s segments include sales to foreign governments or to companies located in foreign countries. For the fiscal years ended April 30, 2026 and 2025, revenues, based on the location of the procurement entity, were derived from the following locations (in thousands):

 

   For the Fiscal Years Ended
April 30,		 
   2026   2025 
Domestic  $57,745   $65,362 
Foreign   5,482    4,449 
   $63,227   $69,811 

 

During the fiscal year ended April 30, 2026, material foreign sales to one Asian country amounted to approximately $3.8 million. During the fiscal year ended April 30, 2025, material foreign sales to one Asian country amounted to approximately $3.5 million.