Segment, Customer and Geographic Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment, Customer and Geographic Information

11. 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 operating profits 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 months ended March 31, 2017 and 2016, respectively, and the segment balance sheet information as of March 31, 2017 and December 31, 2016:

	Three Months Ended March 31, 2017
	Connected Solutions		RF Solutions		Corporate			Total
REVENUES	$	17,271	$	7,765	$	(57	)	$	24,979
GROSS PROFIT		5,403		3,906		6			9,315
OPERATING INCOME (LOSS)	$	1,744	$	709	$	(2,746	)	$	(293	)
Depreciation	$	426	$	247	$	61		$	734
Intangible amortization	$	39	$	251	$	0		$	290
Capital expenditures	$	318	$	56	$	679		$	1,053

	As of March 31, 2017
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	12,513	$	5,834	$	0	$	18,347
Inventories	$	10,834	$	1,858	$	0	$	12,692
Long-lived assets:
Property and equipment, net	$	9,699	$	2,016	$	1,344	$	13,059
Goodwill	$	0	$	3,332	$	0	$	3,332
Intangible assets, net	$	195	$	2,790	$	0	$	2,985
Deferred tax assets, net	$	0	$	0	$	5,399	$	5,399
Other noncurrent assets	$	0	$	0	$	35	$	35

	Three Months Ended March 31, 2016
	Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	14,699	$	6,435		$	(60	)	$	21,074
GROSS PROFIT	$	4,324	$	2,730		$	(3	)	$	7,051
OPERATING INCOME (LOSS)	$	1,305	$	(1,527	)	$	(2,531	)	$	(2,753	)
Depreciation	$	426	$	305		$	61		$	792
Intangible amortization	$	70	$	699		$	0		$	769
Capital expenditures	$	579	$	89		$	31		$	699

	As of December 31, 2016
	Connected Solutions		RF Solutions		Corporate		Total
Accounts receivable	$	12,731	$	6,370	$	0	$	19,101
Inventories	$	12,301	$	2,141	$	0	$	14,442
Long-lived assets:
Property and equipment, net	$	9,756	$	2,122	$	731	$	12,609
Goodwill	$	0	$	3,332	$	0	$	3,332
Intangible assets, net	$	233	$	3,042	$	0	$	3,275
Deferred tax assets, net	$	0	$	0	$	4,512	$	4,512
Other noncurrent assets	$	0	$	0	$	36	$	36

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

	Three Months Ended March 31,
	2017		2016
Revenues:
Products	$	22,970	$	19,183
Services		2,009		1,891
Total revenues	$	24,979	$	21,074

	Three Months Ended March 31,
	2017		2016
Cost of revenues:
Products	$	13,516	$	11,724
Services		2,148		2,299
Total cost of revenues	$	15,664	$	14,023

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

	Three Months Ended
	March 31,
Region	2017			2016
Asia Pacific		22	%		18	%
Europe, Middle East, & Africa		6	%		11	%
Other Americas		4	%		7	%
Total Foreign sales		32	%		36	%

There wereno customers that accounted for greater than 10% of revenues for the three months ended March 31, 2017.  Huawei Technologies Co., Ltd (“Huawei”) accounted for approximately 10% of revenues for the three months ended March 31, 2016.