Note 9 — Segment and Related Information

The Company is organized in two reportable business segments, Restaurant/Retail and Government. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. Management views the Restaurant/Retail and Government segments separately in operating its business, as the products and services are different for each segment. The Restaurant/Retail segment offers management technology solutions to restaurants and retail, including in the fast casual, quick serve and table service restaurant categories, and specialty retail outlets. These offerings include hardware and cloud and on-premise software applications utilized at the point-of-sale, back of store and corporate office, and includes the Brink cloud-based point-of-sale software and the SureCheck solution, which provides food safety monitoring and intelligent checklist management. This segment also offers customer support including field service, installation, and twenty-four-hour telephone support and depot repair. The Government segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets.

Information noted as “Other” primarily relates to the Company’s corporate, home office operations.

Information as to the Company’s segments is set forth below. Amounts below exclude discontinued operations (in thousands).

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues:
Restaurant/Retail	$	34,023		$	38,377		$	133,288		$	105,413
Government		14,915			23,115			43,776			64,042
Total	$	48,938		$	61,492		$	177,064		$	169,455

Operating (loss) income:
Restaurant/Retail	$	(3,559	)	$	1,091		$	603		$	(209	)
Government		1,267			1,417			4,364			4,720
Other		(304	)		(1,687	)		(2,568	)		(3,273	)
		(2,596	)		821			2,399			1,238
Other expense, net		(70	)		(38	)		(264	)		(318	)
Interest (expense) income, net		(39	)		(12	)		(84	)		20
(Loss) income before provision for income taxes	$	(2,705	)	$	771		$	2,051		$	940

Depreciation, amortization and accretion:
Restaurant/Retail	$	886		$	740		$	2,481		$	2,228
Government		5			10			16			29
Other		62			861			308			957
Total	$	953		$	1,611		$	2,805		$	3,214

Capital expenditures including software costs:
Restaurant/Retail	$	1,121		$	787		$	3,452		$	2,437
Government		-			47			7			86
Other		457			681			3,764			1,196
Total	$	1,578		$	1,515		$	7,223		$	3,719

Revenues by country:
United States	$	44,418		$	58,092		$	163,606		$	155,882
Other Countries		4,520			3,400			13,458			13,573
Total	$	48,938		$	61,492		$	177,064		$	169,455

The following table represents identifiable assets by business segment. Amounts below exclude discontinued operations (in thousands).

	September 30, 2017		December 31, 2016

Restaurant/Retail	$	79,004	$	87,672
Government		7,679		6,504
Other		28,050		29,873
Total	$	114,733	$	124,049

The following table represents assets by country based on the location of the assets. Amounts below exclude discontinued operations (in thousands).

	September 30, 2017		December 31, 2016
United States	$	100,932	$	110,369
Other Countries		13,801		13,680
Total	$	114,733	$	124,049

The following table represents goodwill by reporting segment. Amounts below exclude discontinued operations (in thousands).

	September 30, 2017		December 31, 2016
Restaurant/Retail	$	10,315	$	10,315
Government		736		736
Total	$	11,051	$	11,051

Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30 ,
	2017			2016			2017			2016
Hospitality segment:
McDonald’s Corporation		23	%		26	%		35	%		23	%
Yum! Brands, Inc.		17	%		10	%		14	%		11	%
Government segment:
U.S. Department of Defense		31	%		38	%		25	%		38	%
All Others		29	%		26	%		26	%		28	%
		100	%		100	%		100	%		100	%

No other customer within All Others represented more than 10% of the Company’s total revenue for the three and nine months ended September 30, 2017 or 2016.