Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION

Segment Information

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company’s CODM, which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Edge. The operating segments were determined based on the nature of the products offered. The Video segment sells video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (telco) Pay-TV service providers. The Cable Edge segment sells cable edge solutions and related services to cable operators globally.

The Company does not allocate amortization of intangibles, stock-based compensation, restructuring and related charges, TVN acquisition- and integration-related costs, and certain other non-recurring charges to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

On February 29, 2016, the Company completed its acquisition of 100% of the outstanding equity of TVN and assigned TVN to its Video operating segment.

The following tables provide summary financial information by reportable segment (in thousands):

	Year ended December 31,
	2016			2015			2014
Net revenue:
Video	$	351,489		$	291,779		$	326,756
Cable Edge	54,422			85,248			106,801
Total consolidated net revenue	$	405,911		$	377,027		$	433,557
Operating income (loss):
Video	$	11,963		$	13,529		$	18,073
Cable Edge	(12,131		)	(1,599		)	1,239
Total segment operating income (loss)	(168		)	11,930			19,312
Unallocated corporate expenses	(38,972		)	(2,794		)	(3,076		)
Stock-based compensation	(13,060		)	(15,582		)	(17,287		)
Amortization of intangibles	(14,836		)	(6,502		)	(20,520		)
Loss from operations	(67,036		)	(12,948		)	(21,571		)
Non-operating expense, net	(13,394		)	(3,120		)	(224		)
Loss before income taxes	$	(80,430	)	$	(16,068	)	$	(21,795	)

Unallocated corporate expenses include certain corporate-level operating expenses and charges such as restructuring and related charges and excess facilities charges. Additionally, the unallocated corporate expenses in 2016 included $16.9 million of TVN acquisition- and integration-related costs (see Note 3, “Business Acquisition,” of the notes to our Consolidated Financial Statements for additional information) and $13.1 million of restructuring costs related to the TVN VDP (see Note 11, “Restructuring and Related charges-TVN VDP,” of the notes to our Consolidated Financial Statements for additional information) and an inventory obsolescence charge of approximately $4.0 million recorded for some older Cable Edge product lines in accordance with the Company’s policy for excess and obsolete inventory and also as part of our strategic plan to re-position and dedicate the Company’s primary Cable Edge resources to its new CableOS products.

Geographic Information

Revenue by geographic region, based on the location at which each sale originates, and property and equipment, net by geographic region, are summarized as follows (in thousands):

	Year ended December 31,
	2016		2015		2014
Net revenue:
United States	$	171,016	$	175,466	$	206,610
Other countries	234,895		201,561		226,947
Total	$	405,911	$	377,027	$	433,557

Other than the U.S., no country accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2016, 2015 and 2014.

	As of December 31,
	2016		2015
Property and equipment, net:
United States	$	15,197	$	17,086
Israel	9,966		7,560
France	4,872		—
Other countries	2,129		2,366
Total	$	32,164	$	27,012

Customer Concentration

During the year ended December 31, 2016, no customer accounted for more than 10% of our net revenue. Net revenue from Comcast accounted for 12% and 16%, respectively, of the Company’s total net revenue during the years ended December 31, 2015 and 2014. Other than Comcast, no customer accounted for 10% or more of the Company’s total net revenue for fiscal years 2015 and 2014.