Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jan. 31, 2017 | Mar. 08, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | R F INDUSTRIES LTD | |
Entity Central Index Key | 740,664 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | RFIL | |
Entity Common Stock, Shares Outstanding | 8,835,483 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,354 | $ 5,258 |
Trade accounts receivable, net of allowance for doubtful accounts of $64 and $62, respectively | 3,692 | 4,077 |
Inventories, net | 6,554 | 6,022 |
Other current assets | 1,543 | 1,436 |
TOTAL CURRENT ASSETS | 16,143 | 16,793 |
Property and equipment: | ||
Equipment and tooling | 3,206 | 3,203 |
Furniture and office equipment | 802 | 799 |
Property, Plant and Equipment, Gross | 4,008 | 4,002 |
Less accumulated depreciation | 3,247 | 3,174 |
Total property and equipment | 761 | 828 |
Goodwill | 3,219 | 3,219 |
Amortizable intangible assets, net | 3,472 | 3,619 |
Non-amortizable intangible assets | 1,237 | 1,237 |
Other assets | 121 | 141 |
TOTAL ASSETS | 24,953 | 25,837 |
CURRENT LIABILITIES | ||
Accounts payable | 1,373 | 1,138 |
Accrued expenses | 2,009 | 2,770 |
TOTAL CURRENT LIABILITIES | 3,382 | 3,908 |
Deferred tax liabilities | 433 | 409 |
Other long-term liabilities | 88 | 128 |
TOTAL LIABILITIES | 3,903 | 4,445 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock - authorized 20,000,000 shares of $0.01 par value; 8,835,483 shares issued and outstanding at January 31, 2017 and October 31, 2016 | 88 | 88 |
Additional paid-in capital | 19,407 | 19,379 |
Retained earnings | 1,555 | 1,925 |
TOTAL STOCKHOLDERS' EQUITY | 21,050 | 21,392 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 24,953 | $ 25,837 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Trade accounts receivable, allowance for doubtful accounts | $ 64 | $ 62 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 8,835,483 | 8,835,483 |
Common stock, shares outstanding | 8,835,483 | 8,835,483 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Net sales | $ 6,617 | $ 6,784 |
Cost of sales | 4,760 | 4,761 |
Gross profit | 1,857 | 2,023 |
Operating expenses: | ||
Engineering | 224 | 161 |
Selling and general | 1,992 | 2,433 |
Totals | 2,216 | 2,594 |
Operating loss | (359) | (571) |
Other income | 20 | 0 |
Loss from continuing operations before benefit for income taxes | (339) | (571) |
Benefit for income taxes | (101) | (256) |
Loss from continuing operations | (238) | (315) |
Income (loss) from discontinued operations, net of tax | 44 | (38) |
Net loss | $ (194) | $ (353) |
Earnings (loss) per share Basic | ||
Continuing operations | $ (0.03) | $ (0.04) |
Discontinued operations | 0.01 | 0 |
Net loss per share | (0.02) | (0.04) |
Earnings (loss) per share Diluted | ||
Continuing operations | (0.03) | (0.04) |
Discontinued operations | 0.01 | 0 |
Net loss per share | $ (0.02) | $ (0.04) |
Weighted average shares outstanding | ||
Basic | 8,834,747 | 8,716,712 |
Diluted | 8,834,747 | 8,716,712 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (194) | $ (353) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 2 | 20 |
Depreciation and amortization | 220 | 272 |
Stock-based compensation expense | 51 | 52 |
Loss on disposal of fixed assets | 0 | 40 |
Deferred income taxes | 24 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 383 | 94 |
Inventories | (532) | (349) |
Other current assets | (107) | (613) |
Other long-term assets | 20 | (167) |
Accounts payable | 235 | 156 |
Income taxes payable | 0 | (65) |
Accrued expenses | (761) | (600) |
Other long-term liabilities | (40) | 0 |
Net cash used in operating activities | (699) | (1,513) |
INVESTING ACTIVITIES: | ||
Proceeds from sale of fixed assets | 0 | 22 |
Proceeds from sale of inventory | 0 | 322 |
Capital expenditures | (6) | (70) |
Net cash provided by (used in) investing activities | (6) | 274 |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 0 | 20 |
Excess tax provision (benefit) from canceled stock options | (23) | 0 |
Dividends paid | (176) | (610) |
Net cash used in financing activities | (199) | (590) |
Net decrease in cash and cash equivalents | (904) | (1,829) |
Cash and cash equivalents, beginning of period | 5,258 | 7,595 |
Cash and cash equivalents, end of period | 4,354 | 5,766 |
Supplemental cash flow information - income taxes paid | $ 13 | $ 165 |
Unaudited interim condensed con
Unaudited interim condensed consolidated financial statements | 3 Months Ended |
Jan. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unaudited interim condensed consolidated financial statements | Note 1 - Unaudited interim condensed consolidated financial statements The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, which are normal and recurring, have been included in order to make the information not misleading. Information included in the consolidated balance sheet as of October 31, 2016 has been derived from, and certain terms used herein are defined in, the audited financial statements of the Company as of October 31, 2016 included in the Company’s Annual Report on Form 10-K (“Form 10-K”) for the year ended October 31, 2016 that was previously filed with the Securities and Exchange Commission (“SEC”). Operating results for the three-month period ended January 31, 2017 are not necessarily indicative of the results that may be expected for the year ending October 31, 2017. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2016. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of RF Industries, Ltd., Cables Unlimited, Inc. (“Cables Unlimited”), Comnet Telecom Supply, Inc. (“Comnet”), and Rel-Tech Electronics, Inc. (“Rel-Tech”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net loss. Revenue recognition Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. The Company recognizes revenue from product sales after purchase orders are received which contain a fixed price and for shipments with terms of FOB Shipping Point, revenue is recognized upon shipment, for shipments with terms of FOB Destination, revenue is recognized upon delivery and revenue from services is recognized when services are performed, and the recovery of the consideration is considered probable. |
Discontinued operations
Discontinued operations | 3 Months Ended |
Jan. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Note 2 - Discontinued operations For the three months ended January 31, 2017, the Company recognized approximately $ 62,000 2,000 During March 2016, the Company announced the shutdown of its Bioconnect division, which comprised the entire operations of the Medical Cabling and Interconnect segment. The closure is part of the Company’s ongoing plan to close or dispose of underperforming divisions that are not part of the Company’s core operations. For the three months ended January 31, 2017, the Company recognized approximately $ 10,000 40,000 |
Sale of Aviel Electronics divis
Sale of Aviel Electronics division | 3 Months Ended |
Jan. 31, 2017 | |
Sale of Aviel Electronics Division [Abstract] | |
Sale of Aviel Electronics division | Note 3 - Sale of Aviel Electronics division On December 22, 2015, the Company sold the assets of its Aviel Electronics division at a gain of approximately $ 35,000 150,000 250,000 83,000 83,000 5 86,000 40,000 The sale of the Aviel Electronics division does not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, financial results from the sale of Aviel Electronics were reported as part of continuing operations. |
Inventories and major vendors
Inventories and major vendors | 3 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories and major vendors | Note 4 - Inventories and major vendors Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market. Cost has been determined using the weighted average cost method. Inventory carrying value is net of inventory reserves of $534,000 and $500,000 at January 31, 2017 and October 31, 2016, respectively. January 31, 2017 October 31, 2016 Raw materials and supplies $ 2,921 $ 2,642 Work in process 178 279 Finished goods 3,455 3,101 Totals $ 6,554 $ 6,022 No vendor accounted for greater than 10% of inventory purchases for the three months ended January 31, 2017. Purchases of inventory from two major vendors during the three months ended January 31, 2016 represented 14% and 12% of total inventory purchases. The Company has arrangements with these vendors to purchase product based on purchase orders periodically issued by the Company. |
Other current assets
Other current assets | 3 Months Ended |
Jan. 31, 2017 | |
Other current assets [Abstract] | |
Other current assets | Note 5 - Other current assets January 31, 2017 October 31, 2016 Prepaid taxes $ 952 $ 871 Prepaid expense 392 347 Notes receivable, current portion 83 83 Other 116 135 Totals $ 1,543 $ 1,436 Long-term portion of notes receivable of $ 83,000 |
Earnings per share
Earnings per share | 3 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 6 - Earnings per share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially dilutive securities totaling 1,024,188 1,138,510 Three Months Ended January 31, 2017 2016 Weighted average shares outstanding for basic earnings (loss) per share 8,834,747 8,716,712 Add effects of potentially dilutive securities-assumed exercise of stock options - - Weighted average shares outstanding for diluted earnings (loss) per share 8,834,747 8,716,712 |
Stock-based compensation and eq
Stock-based compensation and equity transactions | 3 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock-based compensation and equity transactions | Note 7 - Stock-based compensation and equity transactions The Company’s current stock incentive plan provides for the granting of qualified and nonqualified options to the Company’s officers, directors and employees. The Company satisfies the exercise of options by issuing previously unissued common shares. No options were granted to Company employees during the three months ended January 31, 2017 and 2016. Company stock option plans Descriptions of the Company’s stock option plans are included in Note 10 of the Company’s Annual Report on Form 10-K for the year ended October 31, 2016. Weighted Average Shares Exercise Price Outstanding at November 1, 2016 1,007,851 $ 4.07 Options granted 309,356 $ 1.50 Options canceled or expired (143,019) $ 3.77 Options outstanding at January 31, 2017 1,174,188 $ 3.43 Options exercisable at January 31, 2017 738,444 $ 3.71 Options vested and expected to vest at January 31, 2017 1,172,141 $ 3.43 Weighted average remaining contractual life of options outstanding as of January 31, 2017: 4.36 Weighted average remaining contractual life of options exercisable as of January 31, 2017: 3.46 Weighted average remaining contractual life of options vested and expected to vest as of January 31, 2017: 4.35 Aggregate intrinsic value of options outstanding at January 31, 2017: $ 107,000 Aggregate intrinsic value of options exercisable at January 31, 2017: $ 84,000 Aggregate intrinsic value of options vested and expected to vest at January 31, 2017: $ 107,000 As of January 31, 2017, $ 359,000 2.72 Effective for the fiscal year ending October 31, 2017, non-employee directors receive $ 50,000 30,000 77,339 25,000 0.32 Stock option expense During the three months ended January 31, 2017 and 2016, stock-based compensation expense totaled $ 51,000 52,000 3,000 10,000 48,000 42,000 |
Concentrations of credit risk
Concentrations of credit risk | 3 Months Ended |
Jan. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of credit risk | Note 8 - Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. At January 31, 2017, the Company had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $ 3.8 Two customers accounted for approximately 15 10 14 13 15 13 17 15 |
Segment information
Segment information | 3 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Note 9 - Segment information The Company aggregates operating divisions into operating segments that have similar economic characteristics primarily in the following areas: (1) the nature of the product and services; (2) the nature of the production process; (3) the type or class of customer for their products and services; (4) the methods used to distribute their products or services; (5) if applicable, the nature of the regulatory environment. As of January 31, 2017, the Company had two segments: 1) RF Connector and Cable Assembly and 2) Custom Cabling Manufacturing and Assembly based upon this evaluation. The RF Connector and Cable Assembly segment consisted of one division and the Custom Cabling Manufacturing and Assembly segment was composed of three divisions. The four divisions that met the quantitative thresholds for segment reporting are Connector and Cable Assembly, Cables Unlimited, Comnet and Rel-Tech. The specific customers are different for each division, however, there is some overlapping of product sales to them. The methods used to distribute products are similar within each division aggregated. Management identifies the Company’s segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the Connector and Cable Assembly division constitutes the RF Connector and Cable Assembly segment, and the Cables Unlimited, Comnet and Rel-Tech divisions constitute the Custom Cabling Manufacturing and Assembly segment. As reviewed by the Company’s chief operating decision maker, the Company evaluates the performance of each segment based on income or loss before income taxes. The Company charges depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole. Substantially all of the Company’s operations are conducted in the United States; however, the Company derives a portion of its revenue from export sales. The Company attributes sales to geographic areas based on the location of the customers. Three Months Ended January 31, 2017 2016 United States $ 6,536 $ 6,492 Foreign Countries: Canada 46 71 Israel - 62 Mexico 7 97 All Other 28 62 81 292 Totals $ 6,617 $ 6,784 RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total 2017 Net sales $ 2,535 $ 4,082 $ - $ 6,617 Loss from continuing operations before benefit for income taxes (18) (341) 20 (339) Depreciation and amortization 47 173 - 220 2016 Net sales $ 1,956 $ 4,828 $ - $ 6,784 Loss from continuing operations before benefit for income taxes (453) (118) - (571) Depreciation and amortization 52 220 - 272 |
Income tax benefit
Income tax benefit | 3 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax benefit | Note 10 - Income tax benefit The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The benefit for income taxes was 30 45 The Company recorded income from discontinued operations, net of tax, as disclosed in Note 2. The total amount of unrecognized tax benefits was $ 0 0 |
Intangible assets
Intangible assets | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Note 11 - Intangible assets January 31, 2017 October 31, 2016 Amortizable intangible assets: Non-compete agreements (estimated lives 3 - 5 years) $ 310 $ 310 Accumulated amortization (283) (273) 27 37 Customer relationships (estimated lives 7 - 15 years) 5,099 5,099 Accumulated amortization (1,779) (1,644) 3,320 3,455 Patents (estimated life 14 years) 142 142 Accumulated amortization (17) (15) 125 127 Totals $ 3,472 $ 3,619 Non-amortizable intangible assets: Trademarks $ 1,237 $ 1,237 |
Accrued expenses and other long
Accrued expenses and other long-term liabilities | 3 Months Ended |
Jan. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Note 12 - Accrued expenses and other long-term liabilities January 31, 2017 October 31, 2016 Wages payable $ 613 $ 941 Accrued receipts 637 578 Earn-out liability 374 707 Other current liabilities 385 544 Totals $ 2,009 $ 2,770 Accrued receipts represent purchased inventory for which invoices have not been received. Non-current portion of earn-out liability of $ 88,000 |
Former line of credit
Former line of credit | 3 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Former line of credit | Note 13 - Former line of credit From May 2015 until September 2016, the Company had a $ 5 September 8, 2016 |
Commitments
Commitments | 3 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 14 - Commitments In April 2014, the Company amended its lease for its facility in San Diego, California, extending the term of the lease and reducing its square footage. The amended lease expires in March 2017, however, on January 26, 2017 the term of the lease was extended until July 31, 2022 2,596 20,125 22,721 40,000 The Cables Unlimited division leases an approximately 12,000 13,000 The Comnet Telecom division leases approximately 15,000 11,655 The Rel-Tech Electronic division leases approximately 13,750 8,307 |
Cash dividend and declared divi
Cash dividend and declared dividends | 3 Months Ended |
Jan. 31, 2017 | |
Cash Dividend And Dividends Declaration [Abstract] | |
Cash dividend and declared dividends | Note 15 - Cash dividend and declared dividends The Company paid dividends of $0.02 per share during the three months ended January 31, 2017 for a total of $176,000. The Company paid dividends of $0.07 per share during the three months ended January 31, 2016 for a total of $610,000. |
Subsequent events
Subsequent events | 3 Months Ended |
Jan. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 16 - Subsequent events On March 9, 2017, the Board of Directors of the Company declared a quarterly cash dividend of $ 0.02 |
Inventories and major vendors (
Inventories and major vendors (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following (in thousands): January 31, 2017 October 31, 2016 Raw materials and supplies $ 2,921 $ 2,642 Work in process 178 279 Finished goods 3,455 3,101 Totals $ 6,554 $ 6,022 |
Other current assets (Tables)
Other current assets (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Other current assets [Abstract] | |
Schedule of other current assets | Other current assets consist of the following (in thousands): January 31, 2017 October 31, 2016 Prepaid taxes $ 952 $ 871 Prepaid expense 392 347 Notes receivable, current portion 83 83 Other 116 135 Totals $ 1,543 $ 1,436 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Weighted Average Shares Outstanding | The following table summarizes the computation of basic and diluted weighted average shares outstanding: Three Months Ended January 31, 2017 2016 Weighted average shares outstanding for basic earnings (loss) per share 8,834,747 8,716,712 Add effects of potentially dilutive securities-assumed exercise of stock options - - Weighted average shares outstanding for diluted earnings (loss) per share 8,834,747 8,716,712 |
Stock-based compensation and 25
Stock-based compensation and equity transactions (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Summary of Status of Options Granted under Stock Option Plans and Changes in Options Outstanding | A summary of the status of the options granted under the Company’s stock option plans as of January 31, 2017 and the changes in options outstanding during the three months then ended is presented in the table that follows: Weighted Average Shares Exercise Price Outstanding at November 1, 2016 1,007,851 $ 4.07 Options granted 309,356 $ 1.50 Options canceled or expired (143,019) $ 3.77 Options outstanding at January 31, 2017 1,174,188 $ 3.43 Options exercisable at January 31, 2017 738,444 $ 3.71 Options vested and expected to vest at January 31, 2017 1,172,141 $ 3.43 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Sales by Geographic Area | The following table presents the sales of the Company by geographic area for the three months ended January 31, 2017 and 2016 (in thousands): Three Months Ended January 31, 2017 2016 United States $ 6,536 $ 6,492 Foreign Countries: Canada 46 71 Israel - 62 Mexico 7 97 All Other 28 62 81 292 Totals $ 6,617 $ 6,784 |
Net Sales, Income (Loss) Before Provision for Income Taxes and Other Related Segment Information | Net sales, loss from continuing operations before benefit for income taxes and other related segment information for the three months ended January 31, 2017 and 2016 are as follows (in thousands): RF Connector Custom Cabling and Manufacturing and Cable Assembly Assembly Corporate Total 2017 Net sales $ 2,535 $ 4,082 $ - $ 6,617 Loss from continuing operations before benefit for income taxes (18) (341) 20 (339) Depreciation and amortization 47 173 - 220 2016 Net sales $ 1,956 $ 4,828 $ - $ 6,784 Loss from continuing operations before benefit for income taxes (453) (118) - (571) Depreciation and amortization 52 220 - 272 |
Intangible assets (Tables)
Intangible assets (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets consist of the following (in thousands): January 31, 2017 October 31, 2016 Amortizable intangible assets: Non-compete agreements (estimated lives 3 - 5 years) $ 310 $ 310 Accumulated amortization (283) (273) 27 37 Customer relationships (estimated lives 7 - 15 years) 5,099 5,099 Accumulated amortization (1,779) (1,644) 3,320 3,455 Patents (estimated life 14 years) 142 142 Accumulated amortization (17) (15) 125 127 Totals $ 3,472 $ 3,619 Non-amortizable intangible assets: Trademarks $ 1,237 $ 1,237 |
Accrued expenses and other lo28
Accrued expenses and other long-term liabilities (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses consist of the following (in thousands): January 31, 2017 October 31, 2016 Wages payable $ 613 $ 941 Accrued receipts 637 578 Earn-out liability 374 707 Other current liabilities 385 544 Totals $ 2,009 $ 2,770 |
Discontinued operations - Addit
Discontinued operations - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 44,000 | $ (38,000) |
Radio Mobile, Inc [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Royalty revenue | 62,000 | |
RF Neulink [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Royalty revenue | 2,000 | |
Bioconnect division [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 10,000 | $ (40,000) |
Sale of Aviel Electronics div30
Sale of Aviel Electronics division - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 22, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | |
Gain (Loss) on Disposition of Assets, Total | $ 0 | $ (40,000) | |
Aviel Electronics Division [Member] | |||
Gain (Loss) on Disposition of Assets, Total | $ 35,000 | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 150,000 | ||
Discontinued Operation, Intra-Entity Amounts, Discontinued Operation after Disposal, Revenue | 86,000 | ||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | $ (40,000) | ||
Aviel Electronics Division [Member] | Notes Payable, Other Payables [Member] | |||
Debt Instrument, Term | 3 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Promissory Note [Member] | Aviel Electronics Division [Member] | Other Current Assets [Member] | |||
Disposal Group, Including Discontinued Operation, Accounts Payable | 83,000 | ||
Promissory Note [Member] | Aviel Electronics Division [Member] | Other Assets [Member] | |||
Disposal Group, Including Discontinued Operation, Accounts Payable | $ 83,000 | ||
Promissory Note [Member] | Aviel Electronics Division [Member] | Notes Payable, Other Payables [Member] | |||
Disposal Group, Including Discontinued Operation, Accounts Payable | $ 250,000 |
Other current assets (Detail)
Other current assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Prepaid taxes | $ 952 | $ 871 |
Prepaid expense | 392 | 347 |
Notes receivable, current portion | 83 | 83 |
Other | 116 | 135 |
Totals | $ 1,543 | $ 1,436 |
Other current assets - Addition
Other current assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Increase (Decrease) In Other Noncurrent Assets | $ (20,000) | $ 167,000 |
Notes Receivable [Member] | ||
Increase (Decrease) In Other Noncurrent Assets | $ 83,000 |
Earnings per share - Additional
Earnings per share - Additional Information (Detail) - shares | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,024,188 | 1,138,510 |
Inventories and major vendors -
Inventories and major vendors - Components of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Inventory [Line Items] | ||
Raw materials and supplies | $ 2,921 | $ 2,642 |
Work in process | 178 | 279 |
Finished goods | 3,455 | 3,101 |
Totals | $ 6,554 | $ 6,022 |
Inventories and major vendors35
Inventories and major vendors - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Inventory [Line Items] | |||
Inventory Valuation Reserves | $ 534,000 | $ 500,000 | |
Supplier Concentration Risk [Member] | |||
Inventory [Line Items] | |||
Purchases of connector products, percentage | 10.00% | ||
Vendor One | Supplier Concentration Risk [Member] | |||
Inventory [Line Items] | |||
Purchases of connector products, percentage | 14.00% | ||
Vendor Two | Supplier Concentration Risk [Member] | |||
Inventory [Line Items] | |||
Purchases of connector products, percentage | 12.00% |
Computation of basic and dilute
Computation of basic and diluted earnings per share (Detail) - shares | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Denominators: | ||
Weighted average shares outstanding for basic earnings (loss) per share | 8,834,747 | 8,716,712 |
Add effects of potentially dilutive securities-assumed exercise of stock options | 0 | 0 |
Weighted average shares outstanding for diluted earnings (loss) per share | 8,834,747 | 8,716,712 |
Stock-based compensation and 37
Stock-based compensation and equity transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining life of options outstanding | 4 years 4 months 10 days | |||
Weighted average remaining contractual life of options exercisable | 3 years 5 months 16 days | |||
Weighted average life of options vested and expected to vest | 4 years 4 months 6 days | |||
Aggregate intrinsic value of options outstanding | $ 107,000 | |||
Aggregate intrinsic value of options exercisable | 84,000 | |||
Aggregate intrinsic value of options vested and expected to vest | 107,000 | |||
Non-vested stock-based arrangements yet to be recognized | $ 359,000 | |||
Stock based arrangements yet to be recognized, weighted average period expected to be recognized | 2 years 8 months 19 days | |||
Non-employee director annual grant | $ 50,000 | $ 30,000 | ||
Options granted for each non-employee director | 77,339 | |||
Value of stock option issued | $ 25,000 | |||
Fair value of stock option | $ 0.32 | |||
Stock based compensation expense | 51,000 | $ 52,000 | ||
Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 3,000 | 10,000 | ||
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 48,000 | $ 42,000 |
Summary of status of options gr
Summary of status of options granted under stock option plans and changes in options outstanding (Detail) - Stock Option | 3 Months Ended |
Jan. 31, 2017$ / sharesshares | |
Shares | |
Options Outstanding at beginning of year | shares | 1,007,851 |
Options granted | shares | 309,356 |
Options canceled or expired | shares | (143,019) |
Options outstanding at end of year | shares | 1,174,188 |
Options exercisable at end of year | shares | 738,444 |
Options vested and expected to vest at end of year | shares | 1,172,141 |
Weighted Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 4.07 |
Options granted | $ / shares | 1.50 |
Options canceled or expired | $ / shares | 3.77 |
Options outstanding at end of year | $ / shares | 3.43 |
Options exercisable at end of year | $ / shares | 3.71 |
Options vested and expected to vest at end of year | $ / shares | $ 3.43 |
Concentrations of credit risk -
Concentrations of credit risk - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Concentration Risk [Line Items] | ||
Cash, FDIC insured amount | $ 3.8 | |
Sales Revenue, Goods, Net | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 10.00% |
Sales Revenue, Goods, Net | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | |
Sales Revenue, Goods, Net | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.00% | 15.00% |
Accounts Receivable | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | |
Accounts Receivable | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% |
Sales by geographic area (Detai
Sales by geographic area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||
Sales revenue | $ 6,617 | $ 6,784 | $ 6,784 |
United States | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | 6,536 | 6,492 | |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | 46 | 71 | |
Israel | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | 0 | 62 | |
Mexico | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | 7 | 97 | |
All other | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | 28 | 62 | |
Foreign countries, total | |||
Revenue, Major Customer [Line Items] | |||
Sales revenue | $ 81 | $ 292 |
Net sales, income (loss) before
Net sales, income (loss) before provision for income taxes and other related segment information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 6,617 | $ 6,784 | $ 6,784 |
Loss from continuing operations before benefit for income taxes | (339) | (571) | |
Depreciation and amortization | 220 | 272 | $ 272 |
RF Connector and Cable Assembly | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,535 | 1,956 | |
Loss from continuing operations before benefit for income taxes | (18) | (453) | |
Depreciation and amortization | 47 | 52 | |
Custom Cabling Manufacturing and Assembly | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,082 | 4,828 | |
Loss from continuing operations before benefit for income taxes | (341) | (118) | |
Depreciation and amortization | 173 | 220 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Loss from continuing operations before benefit for income taxes | 20 | 0 | |
Depreciation and amortization | $ 0 | $ 0 |
Income tax benefit - Additional
Income tax benefit - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Income Taxes [Line Items] | |||
Provision for income tax as percentage of income (loss) before income taxes | 30.00% | 45.00% | |
Unrecognized tax benefits | $ 0 | $ 0 | |
Accrued interest and penalties related to uncertain tax positions | $ 0 | $ 0 |
Intangible assets (Detail)
Intangible assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Intangible Assets [Line Items] | ||
Amortizable intangible assets, net | $ 3,472 | $ 3,619 |
Non-amortizable intangible assets, trade marks | 1,237 | 1,237 |
Non-compete agreements (estimated lives 3 - 5 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 310 | 310 |
Amortizable intangible assets, accumulated amortization | (283) | (273) |
Amortizable intangible assets, net | 27 | 37 |
Customer relationships (estimated lives 7 - 15 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 5,099 | 5,099 |
Amortizable intangible assets, accumulated amortization | (1,779) | (1,644) |
Amortizable intangible assets, net | 3,320 | 3,455 |
Patents (estimated life 14 years) | ||
Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 142 | 142 |
Amortizable intangible assets, accumulated amortization | (17) | (15) |
Amortizable intangible assets, net | $ 125 | $ 127 |
Intangible assets (Parenthetica
Intangible assets (Parenthetical) (Detail) | 3 Months Ended |
Jan. 31, 2017 | |
Non-compete agreements (estimated lives 3 - 5 years) | Maximum [Member] | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Non-compete agreements (estimated lives 3 - 5 years) | Minimum [Member] | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Customer relationships (estimated lives 7 - 15 years) | Maximum [Member] | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Customer relationships (estimated lives 7 - 15 years) | Minimum [Member] | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Backlog (estimated life 1 year) | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Patents (estimated life 14 years) | |
Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Accrued expenses and other lo45
Accrued expenses and other long-term liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Schedule of Accrued Liabilities [Line Items] | ||
Wages payable | $ 613 | $ 941 |
Accrued receipts | 637 | 578 |
Earn-out liability | 374 | 707 |
Other current liabilities | 385 | 544 |
Totals | $ 2,009 | $ 2,770 |
Accrued expenses and other lo46
Accrued expenses and other long-term liabilities - Additional Information (Detail) | Jan. 31, 2017USD ($) |
Other Noncurrent Liabilities [Member] | |
Schedule Of Accrued Liabilities [Line Items] | |
Accrued Earn Out Liability Non Current | $ 88,000 |
Former line of credit - Additio
Former line of credit - Additional Information (Detail) - Letter of Credit - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Sep. 07, 2016 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Sep. 8, 2016 | |
Line of Credit Facility, Amount Outstanding | $ 5 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Jan. 26, 2017USD ($) | Apr. 30, 2014 | Jan. 31, 2017USD ($)a | |
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net, Total | $ 40,000 | ||
East Brunswick [Member] | Commitments [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Sep. 30, 2017 | ||
Area of Land | a | 15,000 | ||
Operating Leases, Rent Expense | $ 11,655 | ||
Milford [Member] | Commitments [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Aug. 30, 2017 | ||
Area of Land | a | 13,750 | ||
Operating Leases, Rent Expense | $ 8,307 | ||
San Diego, California [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Jul. 31, 2022 | Mar. 31, 2017 | |
Increase Decrease In Monthly Operating Lease Rent Expenses | $ 2,596 | ||
San Diego, California [Member] | Maximum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense | 22,721 | ||
San Diego, California [Member] | Minimum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense | $ 20,125 | ||
New York [Member] | Commitments [Member] | |||
Commitments And Contingencies [Line Items] | |||
Lease Expiration Date | Jun. 30, 2017 | ||
Area of Land | a | 12,000 | ||
Operating Leases, Rent Expense | $ 13,000 |
Cash dividend and declared di49
Cash dividend and declared dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Dividends Payable [Line Items] | ||
Dividends paid, per share | $ 0.02 | $ 0.07 |
Dividends paid | $ 176 | $ 610 |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) - $ / shares | 1 Months Ended | |
Apr. 15, 2017 | Mar. 09, 2017 | |
Subsequent Event [Line Items] | ||
Dividends payable, record date | Mar. 31, 2017 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.02 |