Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Significant Customer and Industry Segment Information

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Note 11 - Significant Customer and Industry Segment Information
 9 Months Ended
Dec. 25, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11.        Significant Customer andIndustry Segment Information

 

The Company has two reportable segments: Microsource and the Giga-tronics Division. Microsource’s primary business is the design of custom Microwave Integrated Components (“MIC”) as well as the production of MIC components using chip and wire assembly methods. Microsource offers a line of tunable, synthesized Band Reject Filters for solving interference problems in Radar/Electronic Warfare (“EW”) (“RADAR/EW”) applications. Self-protection systems onboard high-performance military aircraft often require RADAR filters to block electromagnetic interference generated by other onboard electronic systems, primarily from the aircraft’s main RADAR system. These high-speed, tunable notch filters can quickly block interference from both continuous wave and wide bandwidth emissions. Using proprietary driver and phase lock technology, these filters offer tuning speeds that are up to ten times faster than traditional filter designs. We design these filters specifically for each application. Microsource’s two largest customers are prime contractors for which it develops and manufactures RADAR filters used in fighter jet aircraft.

 

The Giga-tronics Division designs, manufactures and markets a family of functional test products for the RADAR/EW segment of the defense electronics market. Our RADAR/EW test products are used to evaluate and improve the performance of RADAR/EW systems.

 

The table below presents information for the two reportable segments (in thousands):

 

   

Three Month Period Ended December 25, 2021

    

Three Month Period Ended December 26, 2020

  

Description

  

Giga-tronics

Division

    

Microsource

    

Total

    

Giga-tronics

Division

    

Microsource

    

Total

  

Revenue

   $ 164     $ 1,810     $ 1,974     $ 1,559     $ 2,525     $ 4,084  

Interest expense and other, net

   $ (15 )   $ —     $ (15 )   $ (21 )   $ —     $ (21 )

Depreciation and amortization

   $ 50     $ —     $ 50     $ 61     $ —     $ 61  

Net income (loss)

   $ (875 )   $ 80     $ (795 )   $ (164 )   $ 994     $ 830  

Assets (at period end)

   $ 5,554     $ 2,577     $ 8,131     $ 6,229     $ 2,438     $ 8,667  

 

 

   

Nine Month Period Ended December 25, 2021

    

Nine Month Period Ended December 26, 2020

  

Description

  

Giga-tronics

Division

    

Microsource

    

Total

    

Giga-tronics

Division

    

Microsource

    

Total

  

Revenue

   $ 512     $ 7,079     $ 7,591     $ 3,490     $ 6,834     $ 10,324  

Interest expense and other, net

   $ (37 )   $ —     $ (37 )   $ (99 )   $ —     $ (99 )

Depreciation and amortization

   $ 157     $ —     $ 157     $ 195     $ —     $ 195  

Net income (loss)

   $ (2,225 )   $ 632     $ (1,593 )   $ (2,131 )   $ 2,556     $ 425  

Assets (at period end)

   $ 5,554     $ 2,577     $ 8,131     $ 6,229     $ 2,438     $ 8,667  

 

During the third quarter of fiscal 2022, one customer accounted for 79% of the Company’s consolidated revenues and was included in the Microsource segment. A second customer accounted for 11% and was included in the Microsource segment. During the third quarter of fiscal 2021, three customers accounted for approximately 95% of the Company’s consolidated revenues. One customer accounted for 54% of the Company’s consolidated revenue and was included in the Microsource segment. A second customer accounted for 25% of the Company’s consolidated revenue and was included in the Microsource segment. A third customer accounted for 16% of the Company’s consolidated revenue and was included in the Giga-tronics Division.

 

During the first nine months of fiscal 2022, one customer accounted for 80% of the Company’s consolidated revenues and was included in the Microsource segment. During the first nine months of fiscal 2021, three customers accounted for approximately 89% of the Company’s consolidated revenues. One customer accounted for 55% of the Company’s consolidated revenues and was primarily included in the Microsource segment. A second and third customer accounted for a total of 34% of the Company’s consolidated revenue and were included in the Microsource segment and the Giga-tronics Division.