Segment, Customer and Geographic Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment, Customer and Geographic Information

13. Segment, Customer and Geographic Information

PCTEL operates in two new segments for reporting purposes as of January 1, 2013. The Company’s Connected Solutions segment includes its antenna and engineered site solutions. Its RF Solutions segment includes its scanning receivers and RF engineering services. 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 operating profits for the three and six months ended June 30, 2013 and June 30, 2012, respectively, and the segment balance sheet information as of June 30, 2013 and December 31, 2012:

	Three Months Ended June 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	19,199	$	7,602	($	55	)	$	26,746
COST OF REVENUES		13,537		2,726		(65	)		16,198
GROSS PROFIT		5,662		4,876		10			10,548
OPERATING EXPENSES:
Research and development		1,166		1,517		0			2,683
Sales and marketing		2,147		907		0			3,054
General and administrative		457		170		3,198			3,825
Amortization of intangible assets		394		210		0			604
Restructuring charges		124		0		0			124
Total operating expenses		4,288		2,804		3,198			10,290
OPERATING INCOME (LOSS)	$	1,374	$	2,072	($	3,188	)	$	258

	Six Months Ended June 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	38,555	$	13,374	($	111	)	$	51,818
COST OF REVENUES		26,882		4,917		(127	)		31,672
GROSS PROFIT		11,673		8,457		16			20,146
OPERATING EXPENSES:
Research and development		2,302		2,931		0			5,233
Sales and marketing		4,339		1,736		0			6,075
General and administrative		885		329		7,242			8,456
Amortization of intangible assets		790		419		0			1,209
Restructuring charges		225		0		0			225
Total operating expenses		8,541		5,415		7,242			21,198
OPERATING INCOME (LOSS)	$	3,132	$	3,042	($	7,226	)	($	1,052	)

	As of June 30, 2013
	Connected Solutions		RF Solutions		Consolidating		Total
Accounts receivable	$	12,136	$	6,201	$	0	$	18,337
Inventories	$	13,957	$	2,151	$	0	$	16,108
Long-lived assets:
Property and equipment, net	$	11,541	$	1,933	$	1,197	$	14,671
Long-term investment securities	$	0	$	0	$	0	$	0
Goodwill	$	0	$	161	$	0	$	161
Intangible assets, net	$	3,614	$	2,181	$	0	$	5,795
Deferred tax assets, net	$	0	$	0	$	12,989	$	12,989
Other noncurrent assets	$	0	$	0	$	1,727	$	1,727

	Three Months Ended June 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	14,821	$	5,206	($	34	)	$	19,993
COST OF REVENUES		9,717		1,650		(44	)		11,323
GROSS PROFIT		5,104		3,556		10			8,670
OPERATING EXPENSES:
Research and development		1,042		1,173		0			2,215
Sales and marketing		1,543		1,030		0			2,573
General and administrative		244		118		2,294			2,656
Amortization of intangible assets		321		221		0			542
Restructuring charges		0		0		0			0
Total operating expenses		3,150		2,542		2,294			7,986
OPERATING INCOME (LOSS)	$	1,954	$	1,014	($	2,284	)	$	684

	Six Months Ended June 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	27,988	$	9,204	($	38	)	$	37,154
COST OF REVENUES		18,485		2,886		(65	)		21,306
GROSS PROFIT		9,503		6,318		27			15,848
OPERATING EXPENSES:
Research and development		2,119		2,412		0			4,531
Sales and marketing		3,099		1,983		0			5,082
General and administrative		470		259		4,660			5,389
Amortization of intangible assets		643		441		0			1,084
Restructuring charges		0		0		0			0
Total operating expenses		6,331		5,095		4,660			16,086
OPERATING INCOME (LOSS)	$	3,172	$	1,223	($	4,633	)	($	238	)

	As of December 31, 2012
	Connected Solutions		RF Solutions		Consolidating		Total
Accounts receivable	$	11,885	$	6,701	$	0	$	18,586
Inventories	$	14,283	$	3,290	$	0	$	17,573
Long-lived assets:
Property and equipment, net	$	11,868	$	1,746	$	1,161	$	14,775
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 and six months ended June 30, 2013 and 2012, respectively were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Region	2013			2012			2013			2012
Europe, Middle East, & Africa		11	%		13	%		10	%		14	%
Asia Pacific		11	%		9	%		9	%		10	%
Other Americas		7	%		8	%		6	%		7	%
Total Foreign sales		29	%		30	%		25	%		31	%

No customers accounted for 10% or greater of revenues or receivables during the three and six months ended June 30, 2013 or the three and six months ended June 30, 2012.