Segment, Customer and Geographic Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment, Customer and Geographic Information

13. Segment, Customer and Geographic Information

PCTEL operates in two 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 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. 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 following tables are the segment operating profits and cash flow information for the three and nine months ended September 30, 2014 and September 30, 2013, respectively, and the segment balance sheet information as of September 30, 2014 and December 31, 2013:

	Three Months Ended September 30, 2014
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	18,697	$	9,283	($	48	)	$	27,932
GROSS PROFIT		5,803		5,584		7			11,394
OPERATING INCOME (LOSS)	$	2,262	$	2,492	($	2,658	)	$	2,096
Depreciation	$	426	$	211	$	86		$	723
Intangible amortization	$	261	$	204	$	0		$	465
Capital expenditures	$	241	$	345	$	10		$	596

	Nine Months Ended September 30, 2014
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	52,409	$	25,578	($	218	)	$	77,769
GROSS PROFIT		16,635		15,171		20			31,826
OPERATING INCOME (LOSS)	$	5,278	$	5,150	($	8,209	)	$	2,219
Depreciation	$	1,267	$	562	$	257		$	2,086
Intangible amortization	$	891	$	612	$	0		$	1,503
Capital expenditures	$	811	$	1,036	$	37		$	1,884

	As of September 30, 2014
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	13,587	$	6,649	$	0	$	20,236
Inventories	$	14,648	$	1,719	$	0	$	16,367
Long-lived assets:
Property and equipment, net	$	11,175	$	2,907	$	816	$	14,898
Goodwill	$	0	$	161	$	0	$	161
Intangible assets, net	$	1,941	$	1,161	$	0	$	3,102
Deferred tax assets, net	$	0	$	0	$	10,685	$	10,685
Other noncurrent assets	$	0	$	0	$	39	$	39

	Three Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Corporate			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
Depreciation	$	444	$	131	$	85		$	660
Intangible amortization	$	392	$	204	$	0		$	596
Capital expenditures	$	457	$	189	$	4		$	650

	Nine Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Corporate			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	)
Depreciation	$	1,361	$	410	$	235		$	2,006
Intangible amortization	$	1,181	$	623	$	0		$	1,804
Capital expenditures	$	1,087	$	654	$	189		$	1,930

	As of December 31, 2013
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	11,934	$	6,669	$	0	$	18,603
Inventories	$	12,802	$	1,733	$	0	$	14,535
Long-lived assets:
Property and equipment, net	$	11,508	$	2,427	$	1,036	$	14,971
Goodwill	$	0	$	161	$	0	$	161
Intangible assets, net	$	2,832	$	1,772	$	0	$	4,604
Deferred tax assets, net	$	0	$	0	$	11,827	$	11,827
Other noncurrent assets	$	0	$	0	$	41	$	41

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, 2014 and 2013, respectively were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
Region	2014			2013			2014			2013
Asia Pacific		11	%		10	%		11	%		10	%
Europe, Middle East, & Africa		7	%		11	%		9	%		10	%
Other Americas		7	%		8	%		6	%		6	%
Total Foreign sales		25	%		29	%		26	%		26	%

There were no customers that accounted for 10% or greater of revenues during the three and nine months ended September 30, 2014 or the three and nine months ended September 30, 2013.