Annual report pursuant to Section 13 and 15(d)

Note 8 - Significant Customers and Industry Segment Information

v2.4.0.8
Note 8 - Significant Customers and Industry Segment Information
12 Months Ended
Mar. 29, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

8     Significant Customers and Industry Segment Information


The Company has two reportable segments: Giga-tronics Division and Microsource. Giga-tronics Division produces a broad line of test and measurement equipment used in the development, test and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems and automatic testing systems and designs, manufactures, and markets a line of switching devices that link together many specific purpose instruments that comprise automatic test systems. Microsource develops and manufactures a broad line of Yttrium, Iron and Garnet (YIG) tuned oscillators, filters and microwave synthesizers, which are used in a wide variety of microwave instruments or devices.


The accounting policies for the segments are the same as those described in the "Summary of Significant Accounting Policies". The Company evaluates the performance of its segments and allocates resources to them based on earnings before income taxes. Segment net sales include sales to external customers. Inter-segment activities are eliminated in consolidation. Assets include accounts receivable, inventories, equipment, cash, deferred income taxes, prepaid expenses and other long-term assets. The Company accounts for inter-segment sales and transfers at terms that allow a reasonable profit to the seller. During the periods reported there were no significant inter-segment sales or transfers.


The Company's reportable operating segments are strategic business units that offer different products and services. They are managed separately because each business utilizes different technology and requires different accounting systems. The Company’s chief operating decision maker is considered to be the Company’s Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues and pre-tax income by operating segment. The tables below present information for the fiscal years ended in 2014 and 2013.


March 29, 2014 (Dollars in thousands)

 

Giga-tronics Division

   

Microsource

   

Total

 

Revenue

  $ 7,290     $ 6,019     $ 13,309  

Interest expense, net

    (106 )     -       (106 )

Depreciation and amortization

    251       33       284  

Capital expenditures

    482       -       482  

Loss before income taxes

    (3,531 )     (209 )     (3,740 )

Assets

    5,442       2,151       7,593  

March 30, 2013 (Dollars in thousands)

 

Giga-tronics Division

   

Microsource

   

Total

 

Revenue

  $ 9,385     $ 4,802     $ 14,187  

Interest expense, net

    (16 )     -       (16 )

Depreciation and amortization

    162       47       209  

Capital expenditures

    349       -       349  

Loss before income taxes

    (3,693 )     (511 )     (4,204 )

Assets

    6,234       3,126       9,360  

The Company’s Giga-tronics Division and Microsource segments sell to agencies of the U.S. government and U.S. defense-related customers. In fiscal 2014 and 2013, U.S. government and U.S. defense-related customers accounted for 57% and 58% of sales, respectively. During fiscal 2014, one customer accounted for 39% of the Company’s consolidated revenues at March 29, 2014 and was included in the Microsource segment. A second customer accounted for 16% of the Company’s consolidated revenues at March 29, 2014 and was included in the Giga-tronics Division. During fiscal 2013, one customer accounted for 30% of the Company’s consolidated revenues at March 30, 2013 and was included in the Microsource segment. A second customer accounted for 12% of the Company’s consolidated revenues at March 30, 2013 and was included in the Giga-tronics Division.


Export sales accounted for 11% and 21% of the Company’s sales in fiscal 2014 and 2013, respectively. Export sales by geographical area for these fiscal years are shown below:


(Dollars in thousands)

 

March 29, 2014

   

March 30, 2013

 

Americas

  $ 169     $ 213  

Europe

    661       579  

Asia

    507       1,597  

Rest of world

    140       538  

Total

  $ 1,477     $ 2,927