Segment, Customer and Geographic Information

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014, respectively, and the segment balance sheet information as of September 30, 2015 and December 31, 2014:

	Three Months Ended September 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	17,450	$	9,115		($	39	)	$	26,526
GROSS PROFIT		4,729		3,894			7			8,630
OPERATING INCOME (LOSS)	$	1,160	($	1,058	)	($	2,323	)	($	2,221	)
Depreciation	$	428	$	289		$	64		$	781
Intangible amortization	$	195	$	930		$	0		$	1,125
Capital expenditures	$	135	$	151		$	0		$	286
	Nine Months Ended September 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	52,903	$	27,749		($	175	)	$	80,477
GROSS PROFIT		15,588		12,802			20			28,410
OPERATING INCOME (LOSS)	$	4,255	($	181	)	($	8,056	)	($	3,982	)
Depreciation	$	1,281	$	809		$	208		$	2,298
Intangible amortization	$	655	$	2,308		$	0		$	2,963
Capital expenditures	$	653	$	836		$	94		$	1,583
	As of September 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total
Accounts receivable	$	12,341	$	8,302		$	0		$	20,643
Inventories	$	14,761	$	2,426		$	0		$	17,187
Long-lived assets:
Property and equipment, net	$	10,400	$	3,027		$	615		$	14,042
Goodwill	$	0	$	3,493		$	0		$	3,493
Intangible assets, net	$	620	$	11,814		$	0		$	12,434
Deferred tax assets, net	$	0	$	0		$	10,348		$	10,348
Other noncurrent assets	$	0	$	0		$	36		$	36

	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 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 nine months ended September 30, 2015 and 2014, respectively were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Region	2015			2014			2015			2014
Asia Pacific		9	%		11	%		9	%		11	%
Europe, Middle East, & Africa		7	%		7	%		9	%		9	%
Other Americas		7	%		7	%		6	%		6	%
Total Foreign sales		23	%		25	%		24	%		26	%

There were no customers that accounted for 10% or greater of revenues during the three months and nine months ended September 30, 2015 and no customers accounted for greater than 10% of revenues for the three and nine months ended September 30, 2014.