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SEGMENT INFORMATION
 3 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block]

NOTE G – 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 former wholly owned subsidiary, FEI-Elcom, Inc. FEI-Elcom, in addition to its own product line, provided design and technical support for the FEI-NY segment’s communication 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 remained 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 total revenues and profits generated by each geographic location 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 chief operating decision maker (“CODM”) views the business.

 

The accounting policies of the two segments are the same as those described in “Note 1. Summary of Accounting Policies” to the consolidated financial statements included in the Form 10-K. 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, forecasted results, and the annual plan. Additionally, operating income by segment is used to determine areas of business process improvement and potential profitable market opportunities. All acquired assets, including intangible assets, are included in the assets of both reporting segments.

The tables below present segment revenues, significant segment expenses, which consist of segment cost of revenues and segment R&D costs, and segment operating income for each reportable segment and on a consolidated basis as reported in the condensed consolidated statements of operations for the three months ended July 31, 2026 and 2025 (in thousands):

 

   Three Months Ended
July 31,		 
   2026   2025 
Revenues:        
FEI-NY  $17,594   $10,354 
FEI-Zyfer   6,957    3,718 
Less intersegment revenues   (1,100)   (260)
Consolidated revenues  $23,451   $13,812 
           
Cost of revenues:          
FEI-NY  $9,297   $6,947 
FEI-Zyfer   4,668    2,091 
Less intersegment cost of revenues   (1,264)   (308)
Consolidated cost of revenues  $12,701   $8,730 
           
Research and development expenses:          
FEI-NY  $1,125   $550 
FEI-Zyfer   320    583 
Consolidated research and development expenses  $1,445   $1,133 
           
Operating income:          
FEI-NY  $4,264   $166 
FEI-Zyfer   972    300 
Less intersegment margin   164    48 
Corporate   (200)   (150)
Consolidated operating income  $5,200   $364 

 

Included in the determination of operating income is selling, general, and administrative expenses of $2.9 million and $2.7 million for the three months ended July 31, 2026 and 2025, respectively, for the FEI-NY segment, and $1.0 million and $0.7 million for the three months ended July 31, 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 July 31, 2026 and April 30, 2026 and the depreciation and amortization charges related to these identifiable assets for the three months then ended (in thousands):

 

   July 31,
2026		   April 30,
2026		 
Identifiable assets:        
FEI-NY  $36,988   $40,849 
FEI-Zyfer   26,865    23,759 
Less intersegment balances   (649)   (814)
Corporate   90,373    26,912 
Consolidated identifiable assets  $153,577   $90,706 

 

   Three Months Ended
July 31,		 
   2026   2025 
Depreciation and amortization:        
FEI-NY  $278   $432 
FEI-Zyfer   9    38 
Consolidated depreciation and amortization expense  $287   $470 

 

Total revenue recognized over time as Percentage of Completion (“POC”) and at a point in time as Passage of Title (“POT”) was approximately $22.4 million and $1.0 million, respectively, of the $23.5 million reported for the three months ended July 31, 2026. Total revenue recognized over time as POC and at a point in time as POT was approximately $12.4 million and $1.4 million, respectively, of the $13.8 million reported for the three months ended July 31, 2025.

 

The amounts by segment and product line were as follows (in thousands):

 

    Three Months Ended July 31,  
    2026     2025  
    POC
Revenue		     POT
Revenue		     Total
Revenue		     POC
Revenue		     POT
Revenue		     Total Revenue  
FEI-NY   $ 16,203     $ 1,391     $ 17,594     $ 9,748     $ 606     $ 10,354  
FEI-Zyfer     6,395       562       6,957       2,680       1,038       3,718  
Intersegment     (174)       (926 )     (1,100 )     -       (260 )     (260 )
Revenue   $ 22,424     $ 1,027     $ 23,451     $ 12,428     $ 1,384     $ 13,812  

 

   Three Months Ended
July 31,		 
   2026   2025 
Revenues by product line:        
Satellite revenue  $11,780   $6,514 
Government non-space revenue   11,066    6,859 
Other commercial & industrial revenue   605    439 
Consolidated revenues  $23,451   $13,812