Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 6 Months Ended
Mar. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 3 - Segment Reporting

 

The Company’s two reportable segments, Applied Optics Center and Optex Richardson, are strategic businesses offering similar products to similar markets and customers; however, they are operated and managed separately due to differences in manufacturing technology, equipment, geographic location, and specific product mix. Applied Optics Center was acquired as a unit, and management at the time of the acquisition was retained.

 

The Applied Optics Center segment also serves as the key supplier of laser coated filters used in the production of periscope assemblies for the Optex Richardson segment. Intersegment sales and transfers are accounted for at annually agreed to pricing rates based on estimated segment product cost, which include segment direct manufacturing and general and administrative costs but exclude profits that would apply to third party external customers.

 

Optex Richardson – Richardson, Texas

 

Optex Richardson revenues are primarily in support of prime and subcontracted military customers. Military sales to prime and subcontracted customers represented approximately 100% of the external segment revenue for the six months ended March 30, 2025. The Optex Richardson segment revenue is comprised of approximately 89% domestic military customers and 11% foreign military customers. For the six months ended March 30, 2025, Optex Richardson represented 51% of the Company’s total consolidated revenue and consisted of revenue from the U.S. government (25%), two major U.S. defense contractors (16%) and (5%), and all other customers (5%).

 

Optex Richardson is located in Richardson Texas, with leased premises consisting of approximately 49,100 square feet. As of March 30, 2025, the Richardson facility operated with 91 full-time equivalent employees in a single shift operation. The facilities at Optex Richardson serve as the home office for both the Optex Richardson and Applied Optics Center segments.

 

Applied Optics Center (AOC) – Dallas, Texas

 

The Applied Optics Center serves primarily domestic U.S. customers. Sales to commercial customers represented approximately 6% and military sales to prime and subcontracted customers represented approximately 94% of the external segment revenue for the six months ended March 30, 2025. Approximately 94% of the AOC revenue was derived from external customers and approximately 6% was related to intersegment sales to Optex Richardson in support of military contracts. For the six months ended March 30, 2025, AOC represented 49% of the Company’s total consolidated revenue and consisted of revenue from the U.S. Government (6%), four major defense contractors (6%), (6%), (6%) and (5%), one commercial customer (5%), and all other customers (15%).

 

The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 square feet of space. As of March 31, 2024, AOC operated with 50 full-time equivalent employees in a single shift operation.

 

 

The financial tables below present information on the reportable segments’ profit or loss for each period, as well as segment assets as of each period end. The Company does not allocate interest expense, income taxes or unusual items to segments.

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the three months ended March 30, 2025  
     

Optex

Richardson

      

Applied Optics

Center

Dallas

      

Other

(non-allocated

costs and

intersegment

eliminations)

      

Consolidated
Total

  
                                 
Revenues from external customers   $ 6,319     $ 4,411     $ -     $ 10,730  
Intersegment revenues     -       322       (322 )     -  
Total revenue   $ 6,319     $ 4,733     $ (322 )   $ 10,730  
                                 
Interest (income) expense   $ -     $ -     $ (1 )   $ (1 )
                                 
Depreciation and amortization   $ 67     $ 59     $ -     $ 126  
                                 
Income before taxes   $ 1,111     $ 1,198     $ (71 )   $ 2,238  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (328 )   $ 328     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 72     $ 72  
Warranty expense   $ -     $ 84     $ -     $ 84  
                                 
Segment assets   $ 19,313     $ 8,164     $ -     $ 27,477  
Expenditures for segment assets   $ 134     $ -     $ -     $ 134  

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the three months ended March 31, 2024  
   

Optex

Richardson

    

Applied Optics Center

Dallas

    

Other

(non-allocated costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 4,274     $ 4,249     $ -     $ 8,523  
Intersegment revenues     -       231       (231 )     -  
Total revenue   $ 4,274     $ 4,480     $ (231 )   $ 8,523  
                                 
Interest expense   $ -     $ -     $ 9     $ 9  
                                 
Depreciation and amortization   $ 38     $ 79     $ -     $ 117  
                                 
Income (loss) before taxes   $ 393     $ 1,120     $ (166 )   $ 1,347  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (337 )   $ 337     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 157     $ 157  
Warranty expense   $ -     $ 26     $ -     $ 26  
                                 
Segment assets   $ 15,155     $ 8,643     $ -     $ 23,798  
Expenditures for segment assets   $ 1,139     $ -     $ -     $ 1,139  

 

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the six months ended March 30, 2025  
   

Optex

Richardson

    

Applied Optics Center

Dallas

    

Other

(non-allocated costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 9,734     $ 9,194     $ -     $ 18,928  
Intersegment revenues     -       593       (593 )     -  
Total revenue   $ 9,734     $ 9,787     $ (593 )   $ 18,928  
                                 
Interest expense   $ -     $ -     $ 12     $ 12  
                                 
Depreciation and amortization   $ 131     $ 124     $ -     $ 255  
                                 
Income before taxes   $ 826     $ 2,491     $ (176 )   $ 3,141  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (655 )   $ 655     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 164     $ 164  
Warranty expense   $ -     $ 54     $ -     $ 54  
                                 
Segment assets   $ 19,313     $ 8,164     $ -     $ 27,477  
Expenditures for segment assets   $ 218     $ 245     $ -     $ 463  

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the six months ended March 31, 2024  
   

Optex

Richardson

    

Applied Optics Center

Dallas

    

Other

(non-allocated costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 7,669     $ 7,823     $ -     $ 15,492  
Intersegment revenues     -       418       (418 )     -  
Total revenue   $ 7,669     $ 8,241     $ (418 )   $ 15,492  
                                 
Interest expense   $ -     $ -     $ 16     $ 16  
                                 
Depreciation and amortization   $ 48     $ 161     $ -     $ 209  
                                 
Income (loss) before taxes   $ 409     $ 1,770     $ (286 )   $ 1,893  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (680 )   $ 680     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 270     $ 270  
Warranty expense   $ 17     $ 14     $ -     $ 31  
                                 
Segment assets   $ 15,155     $ 8,643     $ -     $ 23,798  
Expenditures for segment assets   $ 1,172     $ 25     $ -     $ 1,197