Segment and Geographical Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Geographical Information

Geographic Information

The Company has historically aggregated its two operating segments - Voyetra Turtle Beach (“Headset”) and HyperSound. In light of the subsequent development and anticipated launch of the HyperSound Clear™ product, the Company evaluated whether its operating segments should continue to be aggregated for reporting purposes and determined that as a result of the new hearing healthcare product, the HyperSound operating segment will no longer have similar economic characteristics, production processes, clients or methods of distribution. As such, the Company has disclosed the Headset and HyperSound operating segments separately. The entire business is managed by a single management team whose Chief Operating Decision Maker is the Chief Executive Officer.

The following tables show our net revenues, operating income and total assets by our reporting segments:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net Revenues	(in thousands)
Headset	$	35,700		$	33,198		$	77,823		$	93,677
HyperSound	187			127			365			232
Total	$	35,887		$	33,325		$	78,188		$	93,909
Operating Income (Loss)
Headset	$	(1,943	)	$	(4,441	)	$	(20,431	)	$	(11,193	)
HyperSound	(3,818		)	(2,880		)	(10,437		)	(9,803		)
Total	$	(5,761	)	$	(7,321	)	$	(30,868	)	$	(20,996	)
Interest Expense	$	1,540		$	866		$	3,158		$	6,161
Other non-operating expense, net	$	347		$	334		$	629		$	239
Loss before income tax expense (benefit)	$	(7,648	)	$	(8,521	)	$	(34,655	)	$	(27,396	)

	September 30, 2015		December 31, 2014
Total Assets	(in thousands)
Headset	$	58,035	$	82,798
HyperSound	163,536		164,170
Total	$	221,571	$	246,968

The following table represents total net revenues based on where customers are physically located:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
	(in thousands)
United States	$	23,136	$	19,377	$	52,940	$	59,258
United Kingdom	3,322		4,867		7,855		14,788
Europe	2,756		5,656		6,026		12,341
International	6,673		3,425		11,367		7,522
Total net revenues	$	35,887	$	33,325	$	78,188	$	93,909