Segment, Customer and Geographic Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment, Customer and Geographic Information

12. 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 six months ended June 30, 2015 and 2014, respectively, and the segment balance sheet information as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	18,100	$	9,583		($	58	)	$	27,625
GROSS PROFIT		5,417		4,173			1			9,591
OPERATING INCOME (LOSS)	$	1,498	($	347	)	($	2,816	)	($	1,665	)
Depreciation	$	432	$	273		$	66		$	771
Intangible amortization	$	230	$	955		$	0		$	1,185
Capital expenditures	$	341	$	550		$	42		$	933

	Six Months Ended June 30, 2015
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	35,454	$	18,634	($	137	)	$	53,951
GROSS PROFIT		10,861		8,908		11			19,780
OPERATING INCOME (LOSS)	$	3,187	$	786	($	5,734	)	($	1,761	)
Depreciation	$	852	$	519	$	144		$	1,515
Intangible amortization	$	460	$	1,379	$	0		$	1,839
Capital expenditures	$	518	$	684	$	95		$	1,297

	As of June 30, 2015
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	12,389	$	9,278	$	0	$	21,667
Inventories	$	15,107	$	2,589	$	0	$	17,696
Long-lived assets:
Property and equipment, net	$	10,788	$	3,159	$	681	$	14,628
Goodwill	$	0	$	4,123	$	0	$	4,123
Intangible assets, net	$	815	$	12,114	$	0	$	12,929
Deferred tax assets, net	$	0	$	0	$	9,710	$	9,710
Other noncurrent assets	$	0	$	0	$	36	$	36

	Three Months Ended June 30, 2014
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	17,715	$	8,574	($	107	)	$	26,182
GROSS PROFIT		5,716		5,129		6			10,851
OPERATING INCOME (LOSS)	$	1,845	$	1,645	($	2,945	)	$	545
Depreciation	$	421	$	190	$	86		$	697
Intangible amortization	$	260	$	204	$	0		$	464
Capital expenditures	$	144	$	434	$	32		$	610

	Six Months Ended June 30, 2014
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	33,712	$	16,295	($	170	)	$	49,837
GROSS PROFIT		10,832		9,587		13			20,432
OPERATING INCOME (LOSS)	$	3,015	$	2,659	($	5,551	)	$	123
Depreciation	$	841	$	351	$	171		$	1,363
Intangible amortization	$	630	$	408	$	0		$	1,038
Capital expenditures	$	425	$	684	$	121		$	1,230

	As of December 31, 2014
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	15,947	$	7,927	$	0	$	23,874
Inventories	$	14,172	$	2,186	$	0	$	16,358
Long-lived assets:
Property and equipment, net	$	11,124	$	2,987	$	731	$	14,842
Goodwill	$	0	$	161	$	0	$	161
Intangible assets, net	$	1,681	$	956	$	0	$	2,637
Deferred tax assets, net	$	0	$	0	$	9,710	$	9,710
Other noncurrent assets	$	0	$	0	$	40	$	40

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, 2015 and 2014, respectively were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Region	2015			2014			2015			2014
Asia Pacific		7	%		12	%		8	%		11	%
Europe, Middle East, & Africa		10	%		11	%		10	%		11	%
Other Americas		7	%		4	%		6	%		5	%
Total Foreign sales		24	%		27	%		24	%		27	%

There was one customer that accounted for 10% or greater of revenues during the three months ended June 30, 2015 and no customers accounted for greater than 10% of revenues for the three and six months ended June 30, 2014, or the six months ended June 30, 2015.