Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.2
Segment Reporting
 9 Months Ended
Jun. 29, 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 nine months ended June 29, 2025. The Optex Richardson segment revenue is comprised of approximately 89% domestic military customers and 11% foreign military customers. For the nine months ended June 29, 2025, Optex Richardson represented 55% of the Company’s total consolidated revenue and consisted of revenue from the U.S. government (25%), two major U.S. defense contractors (11%) and (9%), and all other customers (10%).

 

Optex Richardson is located in Richardson Texas, with leased premises consisting of approximately 49,100 square feet. As of June 29, 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 11% and military sales to prime and subcontracted customers represented approximately 89% of the external segment revenue for the nine months ended June 29, 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 nine months ended June 29, 2025, AOC represented 45% of the Company’s total consolidated revenue and consisted of revenue from the U.S. Government (7%), three major defense contractors (7%), (6%), and (4%), and all other customers (21%).

 

The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 square feet of space. As of June 29, 2025, AOC operated with 49 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 June 29, 2025  
   

Optex

Richardson

    

Applied Optics

Center

Dallas

    

Other

(non-

allocated

costs and

intersegment

eliminations)

     Consolidated
Total		  
                         
Revenues from external customers   $ 6,838     $ 4,272     $ -     $ 11,110  
Intersegment revenues     -       325       (325 )     -  
Total revenue   $ 6,838     $ 4,597     $ (325 )   $ 11,110  
                                 
Interest (income) expense   $ -     $ -     $ -     $ -  
                                 
Depreciation and amortization   $ 72     $ 59     $ -     $ 131  
                                 
Income before taxes   $ 1,103     $ 891     $ (83 )   $ 1,911  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (328 )   $ 328     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 83     $ 83  
Warranty expense   $ -     $ 68     $ -     $ 68  
                                 
Segment assets   $ 20,626     $ 8,554     $ -     $ 29,180  
Expenditures for segment assets   $ -     $ -     $ -     $ -  

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the three months ended June 30, 2024  
   

Optex

Richardson

    

Applied Optics Center

Dallas

    

Other

(non-

allocated

costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 4,675     $ 4,385     $ -     $ 9,060  
Intersegment revenues     -       282       (282 )     -  
Total revenue   $ 4,675     $ 4,667     $ (282 )   $ 9,060  
                                 
Interest expense   $ -     $ -     $ 17     $ 17  
                                 
Depreciation and amortization   $ 54     $ 78     $ -     $ 132  
                                 
Income (loss) before taxes   $ 442     $ 1,263     $ (107 )   $ 1,598  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (339 )   $ 339     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 90     $ 90  
Warranty expense   $ -     $ (18 )   $ -     $ (18 )
                                 
Segment assets   $ 16,449     $ 8,413     $ -     $ 24,862  
Expenditures for segment assets   $ 159     $ 147     $ -     $ 306  

 

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the nine months ended June 29, 2025  
   

Optex

Richardson

    

Applied Optics Center

Dallas

    

Other

(non-

allocated

costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 16,572     $ 13,466     $ -     $ 30,038  
Intersegment revenues     -       917       (917 )     -  
Total revenue   $ 16,572     $ 14,383     $ (917 )   $ 30,038  
                                 
Interest expense   $ -     $ -     $ 12     $ 12  
                                 
Depreciation and amortization   $ 203     $ 183     $ -     $ 386  
                                 
Income before taxes   $ 1,930     $ 3,382     $ (259 )   $ 5,053  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (983 )   $ 983     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 247     $ 247  
Warranty expense   $ -     $ 121     $ -     $ 121  
                                 
Segment assets   $ 20,626     $ 8,554     $ -     $ 29,180  
Expenditures for segment assets   $ 218     $ 245     $ -     $ 463  

 

   

Reportable Segment Financial Information

(thousands)

  
    As of and for the nine months ended June 30, 2024  
   

Optex

Richardson

    

Applied

Optics

Center

Dallas

    

Other

(non-

allocated

costs and intersegment eliminations)

    

Consolidated

Total

  
                         
Revenues from external customers   $ 12,344     $ 12,208     $ -     $ 24,552  
Intersegment revenues     -       700       (700 )     -  
Total revenue   $ 12,344     $ 12,908     $ (700 )   $ 24,552  
                                 
Interest expense   $ -     $ -     $ 32     $ 32  
                                 
Depreciation and amortization   $ 103     $ 238     $ -     $ 341  
                                 
Income (loss) before taxes   $ 850     $ 3,033     $ (392 )   $ 3,491  
                                 
Other significant noncash items:                                
Allocated home office expense   $ (1,019 )   $ 1,019     $ -     $ -  
Stock compensation expense   $ -     $ -     $ 360     $ 360  
Warranty expense   $ 17     $ (4 )   $ -     $ 13  
                                 
Segment assets   $ 16,449     $ 8,413     $ -     $ 24,862  
Expenditures for segment assets   $ 1,331     $ 172     $ -     $ 1,503