Segment, Customer and Geographic Information

3 Months Ended

Mar. 31, 2013

Segment, Customer and Geographic Information [Abstract]

Segment, Customer and Geographic Information

13. Segment, Customer and Geographic Information

PCTEL operates in two new segments for reporting purposes. The Company’s Connected Solutions segment includes its antenna and engineered site solutions. Its RF Solutions segment includes its scanning receivers, related RF engineering services, and PCTEL Secure, until April 30, 2013, as discussed below. Each of the segments has its own segment manager as well as its own engineering, sales and marketing, and operational general and administrative functions. All of the Company’s accounting and finance, human resources, IT and legal functions are provided on a centralized basis through the corporate function. The Company manages its balance sheet and cash flows centrally at the corporate level, with the exception of trade accounts receivable and inventory which is managed at the segment level. Each of the segment managers reports to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. As of January 1, 2013 the Company’s chief operating decision maker uses the profit and loss results through operating profit and identified assets for Connected Solutions and RF Solutions segments to make operating decisions. The segment information presented in the financial statements restates history for the new Connected Solutions and RF Solution segments on a consistent basis with the current period.

The following tables are the segment information as of March 31, 2013 and December 31, 2012 and for the three months ended March 31, 2013 and 2012, respectively:

	Three Months Ended March 31, 2013
	Connected Solutions		RF Solutions			Consolidating			Total
REVENUES	$	19,354	$	5,774		($	55	)	$	25,073
COST OF REVENUES		13,342		2,194			(61	)		15,475
GROSS PROFIT		6,012		3,580			6			9,598
OPERATING EXPENSES:
Research and development		1,136		1,487			0			2,623
Sales and marketing		2,193		827			0			3,020
General and administrative		429		206			4,044			4,679
Amortization of intangible assets		395		210			0			605
Restructuring charges		101		0			0			101
Total operating expenses		4,254		2,730			4,044			11,028
OPERATING INCOME (LOSS)	$	1,758	$	850		($	4,038	)	($	1,430	)
	As of March 31, 2013
	Connected Solutions		RF Solutions			Consolidating			Total
Accounts receivable	$	12,576	$	5,267		$	0		$	17,843
Inventories	$	14,161	$	2,687		$	0		$	16,848
Long-lived assets:
Property and equipment, net	$	11,825	$	1,772		$	1,105		$	14,702
Goodwill	$	0	$	161		$	0		$	161
Intangible assets, net	$	4,009	$	2,390		$	0		$	6,399
Deferred tax assets, net	$	0	$	0		$	13,000		$	13,000
Other noncurrent assets	$	0	$	0		$	1,729		$	1,729
	Three Months Ended March 31, 2012
	Connected Solutions		RF Solutions			Consolidating			Total
REVENUES	$	13,167	$	3,998		($	4	)	$	17,161
COST OF REVENUES		8,768		1,235			(20	)		9,983
GROSS PROFIT		4,399		2,763			16			7,178
OPERATING EXPENSES:
Research and development		1,077		1,730			0			2,807
Sales and marketing		1,717		799			0			2,516
General and administrative		226		159			2,367			2,752
Amortization of intangible assets		322		423			0			745
Restructuring charges		0		0			0			0
Total operating expenses		3,342		3,111			2,367			8,820
OPERATING INCOME (LOSS)	$	1,057	($	348	)	($	2,351	)	($	1,642	)
	As of December 31, 2012
	Connected Solutions		RF Solutions			Consolidating			Total
Accounts receivable	$	11,884	$	6,702		$	0		$	18,586
Inventories	$	14,283	$	3,290		$	0		$	17,573
Long-lived assets:
Property and equipment, net	$	11,868	$	1,748		$	1,161		$	14,777
Goodwill	$	0	$	161		$	0		$	161
Intangible assets, net	$	4,404	$	2,600		$	0		$	7,004
Deferred tax assets, net	$	0	$	0		$	14,034		$	14,034
Other noncurrent assets	$	0	$	0		$	1,636		$	1,636

The Company’s revenues to customers outside of the United States, as a percent of total revenues for the three months ended March 31, 2013 and 2012, respectively were as follows:

	Three Months Ended
	March 31,
Region	2013			2012
Europe, Middle East, & Africa		10	%		15	%
Asia Pacific		7	%		10	%
Other Americas		5	%		6	%
Total Foreign sales		22	%		31	%

One customer accounted for 10% or greater of revenues during the three months ended March 31, 2013 and the three months ended March 31, 2012.