Segment, Customer and Geographic Information

9 Months Ended

Sep. 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 nine months ended September 30, 2013 and September 30, 2012, respectively, and the segment balance sheet information as of September 30, 2013 and December 31, 2012:

	Three Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	18,318	$	8,243	($	90	)	$	26,471
GROSS PROFIT		5,684		5,090		2			10,776
OPERATING INCOME (LOSS)	$	1,738	$	2,098	($	2,908	)	$	928
	Nine Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	56,874	$	21,617	($	201	)	$	78,290
GROSS PROFIT		17,352		13,547		18			30,917
OPERATING INCOME (LOSS)	$	4,872	$	5,139	($	10,135	)	($	124	)
	As of September 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total
Accounts receivable	$	11,231	$	6,044	$	0		$	17,275
Inventories	$	13,462	$	1,776	$	0		$	15,238
Long-lived assets:
Property and equipment, net	$	11,520	$	1,990	$	1,109		$	14,619
Goodwill	$	0	$	161	$	0		$	161
Intangible assets, net	$	3,223	$	1,976	$	0		$	5,199
Deferred tax assets, net	$	0	$	0	$	12,441		$	12,441
Other noncurrent assets	$	0	$	0	$	1,796		$	1,796

	Three Months Ended September 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	19,714	$	6,182	($	43	)	$	25,853
GROSS PROFIT		5,684		4,348		6			10,038
OPERATING INCOME (LOSS)	$	1,287	$	1,879	($	2,007	)	$	1,159
	Nine Months Ended September 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	47,687	$	15,387	($	67	)	$	63,007
GROSS PROFIT		15,186		10,667		35			25,888
OPERATING INCOME (LOSS)	$	4,471	$	3,090	($	6,639	)	$	922
	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 nine months ended September 30, 2013 and 2012, respectively were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
Region	2013			2012			2013			2012
Europe, Middle East, & Africa		11	%		11	%		10	%		13	%
Asia Pacific		10	%		10	%		10	%		9	%
Other Americas		8	%		6	%		6	%		7	%
Total Foreign sales		29	%		27	%		26	%		29	%

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