Segment, Customer and Geographic Information

6 Months Ended

Jun. 30, 2016

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 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 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, 2016 and 2015, respectively, and the segment balance sheet information as of June 30, 2016 and December 31, 2015:

	Three Months Ended June 30, 2016
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	15,781	$	8,507		$	(45	)	$	24,243
GROSS PROFIT		4,941		4,286			10			9,237
OPERATING INCOME (LOSS)	$	1,792	$	(4,372	)	$	(2,750	)	$	(5,330	)
Depreciation	$	468	$	331		$	0		$	799
Intangible amortization	$	44	$	700		$	0		$	744
Capital expenditures	$	264	$	109		$	320		$	693
	Six Months Ended June 30, 2016
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	30,480	$	14,942		$	(105	)	$	45,317
GROSS PROFIT	$	9,265	$	7,016		$	7		$	16,288
OPERATING INCOME (LOSS)	$	3,094	$	(5,896	)	$	(5,281	)	$	(8,083	)
Depreciation	$	933	$	658		$	0		$	1,591
Intangible amortization	$	114	$	1,399		$	0		$	1,513
Capital expenditures	$	843	$	198		$	351		$	1,392

	As of June 30, 2016
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	10,668	$	7,523	$	0	$	18,191
Inventories	$	12,628	$	2,562	$	0	$	15,190
Long-lived assets:
Property and equipment, net	$	10,163	$	2,624	$	828	$	13,615
Goodwill	$	0	$	3,332	$	0	$	3,332
Intangible assets, net	$	311	$	4,830	$	0	$	5,141
Deferred tax assets, net	$	0	$	0	$	8,949	$	8,949
Other noncurrent assets	$	0	$	0	$	38	$	38

	Three Months Ended June 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	18,100	$	9,583		$	(58	)	$	27,625
GROSS PROFIT	$	5,417	$	3,931		$	1		$	9,349
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	$	8,647		$	11		$	19,519
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 December 31, 2015
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	12,875	$	8,126	$	0	$	21,001
Inventories	$	15,507	$	2,089	$	0	$	17,596
Long-lived assets:
Property and equipment, net	$	10,250	$	2,985	$	604	$	13,839
Goodwill	$	0	$	3,332	$	0	$	3,332
Intangible assets, net	$	425	$	10,953	$	0	$	11,378
Deferred tax assets, net	$	0	$	0	$	13,155	$	13,155
Other noncurrent assets	$	0	$	0	$	40	$	40

The Company’s revenues attributable to products and services are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues:
Products	$	21,308	$	23,032	$	40,491	$	46,189
Services		2,935		4,593		4,826		7,762
Total revenues	$	24,243	$	27,625	$	45,317	$	53,951

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of revenues:
Products	$	12,203	$	14,052	$	23,754	$	27,542
Services		2,803		4,224		5,275		6,890
Total cost of revenues	$	15,006	$	18,276	$	29,029	$	34,432

The Company’s revenue to customers by geographic location, as a percent of total revenues, is as follows:

	Three Months Ended						Three Months Ended
	June 30,						June 30,
Region	2016			2015			2016			2015
Asia Pacific		16	%		7	%		17	%		8	%
Europe, Middle East, & Africa		7	%		10	%		9	%		10	%
Other Americas		6	%		7	%		6	%		6	%
Total Foreign sales		29	%		24	%		32	%		24	%

There was one customer that accounted for 10% or greater of revenues during the three months ended June 30, 2015.    No customers accounted for greater than 10% of revenues for three months ended June 30, 2016 or for the six months ended June 30, 2016 and 2015, respectively.