Disclosure about Segments of an Enterprise and Geographic Areas

9 Months Ended

Apr. 01, 2012

Segment Reporting [Abstract]

Disclosure about Segments of an Enterprise and Geographic Areas

Disclosure about Segments of an Enterprise and Geographic Areas

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers with respect to the allocation of resources and performance.

The Company operates in one segment, the development and marketing of network infrastructure equipment. The Company conducts business globally and is managed geographically. Revenue is attributed to a geographical area based on the location of the customers. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Middle East and Africa; and APAC which includes Asia Pacific, South Asia and Japan. Prior to the first quarter of fiscal 2012, South America was included as part of EMEA. Revenue by geographical area (as presented in the table below) for the three and nine months ended March 27, 2011 has been adjusted to reflect this change.

Information regarding geographic areas is as follows (in thousands):

	Three Months Ended											Nine Months Ended
	April 1, 2012			March 27, 2011			$ Change			% Change		April 1, 2012			March 27, 2011			$ Change			% Change
Net Revenues:
Americas	$	29,722		$	29,411		$	311		1.1	%	$	99,968		$	92,319		$	7,649		8.3	%
Percentage of net revenue	40.5		%	38.9		%						42.5		%	37.7		%
EMEA	31,543			29,389			2,154			7.3	%	94,857			100,468			(5,611		)	(5.6	)%
Percentage of net revenue	43.0		%	38.8		%						40.4		%	41.1		%
APAC	12,103			16,899			(4,796		)	(28.4	)%	40,249			51,880			(11,631		)	(22.4	)%
Percentage of net revenue	16.5		%	22.3		%						17.1		%	21.2		%
Total net revenues	$	73,368		$	75,699		$	(2,331	)	(3.1	)%	$	235,074		$	244,667		$	(9,593	)	(3.9	)%

The level of sales to any one customer may vary from period to period; however, the Company expects that significant customer concentration will continue for the foreseeable future. Westcon, Scansource, Tech Data, and Ericsson AB accounted for 34.1%, 18.7%, 12.1%, and 11.2% of the Company's revenue in the third quarter of fiscal 2012. Westcon, Scansource, Ericsson AB, and Tech Data accounted for 16.5%, 14.1%, 14.0%, and 12.1% of the Company's revenue in the third quarter of fiscal 2011.

Westcon, Scansource, Ericsson AB, and Tech Data accounted for 23.6%, 14.8%, 11.3%, and 10.0% of the Company's revenue in the first nine months of fiscal 2012. Westcon, Scansource, Ericsson AB, and Tech Data accounted for 16.6%, 13.2%, 12.1%, and 11.7% of the Company's revenue in the first nine months of fiscal 2011.

Substantially all of the Company’s assets as of April 1, 2012 and July 3, 2011 were attributable to its Americas operations.