Schedule of Reportable Segments and Reconciliation of Segment Contribution Income to Income Before Income Taxes |
Financial information for each reportable segment and a reconciliation of segment contribution income (loss) to income (loss) before income taxes is as follows: | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | July 1, 2018 | | July 2, 2017 | | July 1, 2018 | | July 2, 2017 | | (In thousands, except percentage data) | Net revenue: | | | | | | | | Arlo | $ | 104,813 |
| | $ | 78,732 |
| | $ | 201,022 |
| | $ | 139,444 |
| Connected Home | 191,164 |
| | 185,905 |
| | 368,945 |
| | 380,266 |
| SMB | 70,843 |
| | 66,086 |
| | 141,826 |
| | 134,670 |
| Total net revenue | $ | 366,820 |
| | $ | 330,723 |
| | $ | 711,793 |
| | $ | 654,380 |
| Contribution income (loss): | | | | | | | | Arlo | $ | (42 | ) | | $ | 3,172 |
| | $ | 4,318 |
| | $ | 3,493 |
| Arlo contribution margin | (0.0 | )% | | 4.0 | % | | 2.1 | % | | 2.5 | % | Connected Home | $ | 30,331 |
| | $ | 25,124 |
| | $ | 55,860 |
| | $ | 56,836 |
| Connected Home contribution margin | 15.9 | % | | 13.5 | % | | 15.1 | % | | 14.9 | % | SMB | $ | 18,343 |
| | $ | 16,752 |
| | $ | 36,930 |
| | $ | 35,256 |
| SMB contribution margin | 25.9 | % | | 25.3 | % | | 26.0 | % | | 26.2 | % | Total segment contribution income | $ | 48,632 |
| | $ | 45,048 |
| | $ | 97,108 |
| | $ | 95,585 |
| Corporate and unallocated costs | (26,946 | ) | | (17,033 | ) | | (49,549 | ) | | (35,234 | ) | Amortization of intangibles (1) | (2,346 | ) | | (3,146 | ) | | (4,807 | ) | | (7,528 | ) | Stock-based compensation expense | (8,970 | ) | | (5,701 | ) | | (17,120 | ) | | (10,829 | ) | Separation expense | (11,984 | ) | | — |
| | (18,768 | ) | | — |
| Restructuring and other charges | (1,376 | ) | | (22 | ) | | (1,367 | ) | | (59 | ) | Litigation reserves, net | (5 | ) | | (53 | ) | | (5 | ) | | (53 | ) | Interest income | 1,072 |
| | 482 |
| | 1,820 |
| | 887 |
| Other income (expense), net | 1,061 |
| | 383 |
| | (191 | ) | | 718 |
| Income (loss) before income taxes | $ | (862 | ) | | $ | 19,958 |
| | $ | 7,121 |
| | $ | 43,487 |
|
_________________________ | | (1) | Amount excludes amortization expense related to patents within purchased intangibles in cost of revenue. |
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Schedule of Net Revenue by Geography |
The following table shows net revenue by geography for the periods indicated: | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | July 1, 2018 | | July 2, 2017 | | July 1, 2018 | | July 2, 2017 | | (In thousands) | United States (U.S.) | $ | 252,305 |
| | $ | 221,387 |
| | $ | 480,800 |
| | $ | 427,512 |
| Americas (excluding U.S.) | 7,521 |
| | 5,562 |
| | 12,646 |
| | 11,066 |
| EMEA | 68,681 |
| | 55,204 |
| | 135,310 |
| | 113,649 |
| APAC | 38,313 |
| | 48,570 |
| | 83,037 |
| | 102,153 |
| Total net revenue | $ | 366,820 |
| | $ | 330,723 |
| | $ | 711,793 |
| | $ | 654,380 |
|
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Schedule of Long-Lived Asset By Geographic Areas |
Long-lived assets include purchased intangibles, goodwill and property and equipment. The Company's property and equipment are located in the following geographic locations: | | | | | | | | | | As of | | July 1, 2018 | | December 31, 2017 | | (In thousands) | United States (U.S.) | $ | 16,838 |
| | $ | 9,216 |
| Americas (excluding U.S.) | 2,219 |
| | 1,807 |
| EMEA | 318 |
| | 141 |
| China | 6,539 |
| | 6,803 |
| APAC (excluding China) | 3,223 |
| | 2,693 |
| Total property and equipment, net | $ | 29,137 |
| | $ | 20,660 |
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