v3.26.3
Note 8 - Segment Information
 9 Months Ended
Jul. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 8 – Segment information

 

We previously managed our business as two reportable segments, the RF Connector and Cable Assembly segment and the Custom Cabling Manufacturing and Assembly segment. During the fourth quarter of the fiscal year ended  October 31, 2025, we completed changes to the structure of our organization in connection with broader restructuring initiatives, including consolidation of manufacturing operations, headcount reductions, and the transition of our sales organization to a unified, customer‑centric model. As a result of these changes, we now operate as a single reportable segment. Comparative prior‑period segment disclosures that reflected the previous two segments have been revised to conform to this change in our reportable segment.

 

Our CODM, which is our Chief Executive Officer, evaluates our financial information such as revenue, margins, operating expenses, net income or loss, and other non-GAAP financial measures on a consolidated basis to allocate resources and assess performance. However, while our CODM uses more than one measure to assess performance, the Company’s segment disclosures do not include non-GAAP disclosures. The Company has determined that the disclosures below correspond with the amounts in the consolidated financial statements and are most consistent with GAAP.

 

The following table presents our single segment revenue, gross profit, significant expenses, and net income (loss) for the three and nine months ended July 31, 2026 and 2025 (in thousands):

 

 

 

Three Months Ended July 31,

 

 

Nine Months Ended July 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net sales

 

$

23,960

 

 

$

19,790

 

 

$

63,621

 

 

$

57,900

 

Cost of goods sold:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Material cost

 

 

10,327

 

 

 

8,595

 

 

 

27,190

 

 

 

26,485

 

Salaries and benefits

 

 

3,864

 

 

 

3,391

 

 

 

10,873

 

 

 

9,966

 

Depreciation

 

 

121

 

 

 

133

 

 

 

371

 

 

 

397

 

Other costs of sales

 

 

1,110

 

 

 

952

 

 

 

3,262

 

 

 

2,666

 

Total cost of goods sold

 

 

15,422

 

 

 

13,071

 

 

 

41,696

 

 

 

39,514

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Gross profit

 

 

8,538

 

 

 

6,719

 

 

 

21,925

 

 

 

18,386

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Operating expenses:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Salaries and benefits

 

 

2,089

 

 

 

2,208

 

 

 

6,542

 

 

 

6,654

 

Engineering expense

 

 

1,074

 

 

 

759

 

 

 

2,842

 

 

 

2,124

 

Stock-based compensation expense

 

 

283

 

 

 

219

 

 

 

824

 

 

 

640

 

Commission and bonus

 

 

1,280

 

 

 

991

 

 

 

2,320

 

 

 

1,994

 

Depreciation

 

 

81

 

 

 

73

 

 

 

238

 

 

 

218

 

Amortization

 

 

411

 

 

 

411

 

 

 

1,233

 

 

 

1,233

 

Corporate and public company fees

 

 

434

 

 

 

366

 

 

 

1,480

 

 

 

1,175

 

Selling and general

 

 

1,127

 

 

 

972

 

 

 

3,412

 

 

 

3,343

 

Non-cash and one-time charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

123

 

Total operating expenses

 

 

6,779

 

 

 

5,999

 

 

 

18,891

 

 

 

17,504

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Operating income

 

 

1,759

 

 

 

720

 

 

 

3,034

 

 

 

882

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Other expense

 

 

(233

)

 

 

(240

)

 

 

(585

)

 

 

(721

)

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Income before provision for income taxes

 

 

1,526

 

 

 

480

 

 

 

2,449

 

 

 

161

 

Provision for income taxes

 

 

84

 

 

 

88

 

 

 

178

 

 

 

259

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Consolidated net income (loss)

 

$

1,442

 

 

$

392

 

 

$

2,271

 

 

$

(98

)

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Total assets

 

$

72,097

 

 

$

73,201

 

 

$

72,097

 

 

$

73,201

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Expenditures for Segment Assets

 

$

127

 

 

$

108

 

 

$

377

 

 

$

170

 

 

The Company’s single reportable segment total assets equal consolidated total assets.

 

The following table presents revenue for the products and solutions that we offer as of the three and nine months ended July 31, 2026 and 2025 (in thousands):

 

 

 

Three Months Ended July 31,

 

 

 

 

​

 

Nine Months Ended July 31,

 

 

 

 

​

 

 

2026

 

 

 

 

​

 

2025

 

 

 

 

​

 

2026

 

 

 

 

​

 

2025

 

 

 

 

​

Interconnect

 

$

7,835

 

 

 

33

%

 

$

6,212

 

 

 

32

%

 

$

21,640

 

 

 

34

%

 

$

17,602

 

 

 

30

%

Custom Cabling

 

 

10,135

 

 

 

42

%

 

 

7,157

 

 

 

36

%

 

 

24,979

 

 

 

39

%

 

 

18,382

 

 

 

32

%

Integrated Systems

 

 

5,990

 

 

 

25

%

 

 

6,421

 

 

 

32

%

 

 

17,002

 

 

 

27

%

 

 

21,916

 

 

 

38

%

Total net sales

 

$

23,960

 

 

 

100

%

 

$

19,790

 

 

 

100

%

 

$

63,621

 

 

 

100

%

 

$

57,900

 

 

 

100

%

 

All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the three and nine months ended July 31, 2026 and 2025 (in thousands):

 

 

 

Three Months Ended July 31,

 

 

Nine Months Ended July 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

United States

 

$

21,808

 

 

$

18,432

 

 

$

58,354

 

 

$

52,952

 

Foreign Countries:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Canada

 

 

1,755

 

 

 

1,052

 

 

 

3,560

 

 

 

3,678

 

All Other

 

 

397

 

 

 

306

 

 

 

1,707

 

 

 

1,270

 

 

 

 

2,152

 

 

 

1,358

 

 

 

5,267

 

 

 

4,948

 

 

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Totals

 

$

23,960

 

 

$

19,790

 

 

$

63,621

 

 

$

57,900