Segment, Customer and Geographic Information

9 Months Ended

Sep. 30, 2011

Segment, Customer and Geographic Information [Abstract]

Segment, Customer and Geographic Information

14. Segment, Customer and Geographic Information

In 2010, the Company operated in one segment for reporting purposes. Beginning with the formation of PCTEL Secure in January 2011, the Company reports the financial results of PCTEL Secure as a separate operating segment. Because PCTEL Secure is a joint venture, the Company makes decisions regarding allocation of resources separate from the rest of the Company. The Company’s chief operating decision maker (“CODM”) uses the profit and loss results and the assets in deciding how to allocate resources and assess performance between the segments.

The results of operations by segment are as follows for the three and nine months ended September 30, 2011:

	Three Months Ended September 30, 2011											Nine Months Ended September 30, 2011
	PCTEL		PCTEL Secure			Consolidating			Total			PCTEL		PCTEL Secure			Consolidating			Total
REVENUES	$	19,494	$	0		$	0		$	19,494		$	56,837	$	0		$	0		$	56,837
COST OF REVENUES		10,140		—			—			10,140			30,258		—			—			30,258
GROSS PROFIT		9,354		—			—			9,354			26,579		—			—			26,579
OPERATING EXPENSES:
Research and development		2,618		417			—			3,035			7,976		1,015			—			8,991
Sales and marketing		2,620		23			—			2,643			7,732		121			—			7,853
General and administrative		2,513		7			—			2,520			8,194		42			—			8,236
Amortization of intangible assets		550		111			—			661			1,661		334			—			1,995
Amortization of intangible assets		125		—			—			125			125		—			—			125
Total operating expenses		8,426		558			—			8,984			25,688		1,512			—			27,200
OPERATING INCOME (LOSS)		928		(558	)		—			370			891		(1,512	)		—			(621	)
Other income, net		64		—			—			64			266		—			—			266
INCOME (LOSS) BEFORE INCOME TAXES		992		(558	)					434			1,157		(1,512	)					(355	)
Expense (benefit) for income taxes		—		—			216			216			—		—			(13	)		(13	)
NET INCOME (LOSS)		992		(558	)		(216	)		218			1,157		(1,512	)		13			(342	)
Less: Net loss attributable to noncontrolling interests		—		—			(274	)		(274	)		—		—			(740	)		(740	)
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC.	$	992	($	558	)	$	58		$	492		$	1,157	($	1,512	)	$	753		$	398

The assets by segment are as follows as of September 30, 2011:

	Balance at September 30, 2011
	PCTEL		PCTEL Secure		Consolidating		Total
TOTAL ASSETS	$	128,229	$	3,663		—	$	131,892

The Company’s revenues to customers outside of the United States, as a percent of total revenues for the three and nine months ended September 30, 2011 and 2010, respectively were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Region	2011			2010			2011			2010
Europe, Middle East, & Africa		16	%		22	%		19	%		24	%
Asia Pacific		10	%		10	%		10	%		10	%
Other Americas		9	%		10	%		8	%		8	%
Total Foreign sales		35	%		42	%		37	%		42	%

Revenue from the Company’s major customers representing 10% or more of total revenues for the three and nine months ended September 30, 2011 and 2010, respectively were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Customer	2011			2010			2011			2010
Ascom Network Testing, Inc.		10	%		0	%		5	%		3	%

Ascom, from which the Company acquired scanning receiver assets in December 2009, continues to purchase scanning receiver products from the Company. Ascom acquired Comarco’s WTS business in January 2009. Comarco’s scanning receiver business was a small part of Comarco’s WTS segment.