Segment Information

3 Months Ended

Apr. 02, 2021

Segment Reporting [Abstract]

Segment Information

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 Chief Operating Decision Maker (the “CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the Company’s internal reporting structure, the Company consists of two operating segments: Video and Cable Access. The operating segments were determined based on the nature of the products offered. The Video segment provides 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 Pay-TV service providers. The Cable Access segment provides cable access solutions and related services to cable operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

The following table provides summary financial information by reportable segment:

	Three months ended
(in thousands)	April 2, 2021		March 27, 2020
Video
Revenue	$	70,331	$	54,372
Gross profit	38,774		27,907
Operating income (loss)	3,772		(6,267)
Cable Access
Revenue	$	41,245	$	24,045
Gross profit	17,408		10,414
Operating income (loss)	1,296		(3,265)
Total
Revenue	$	111,576	$	78,417
Gross profit	56,182		38,321
Operating income (loss)	$	5,068	$	(9,532)

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes:

	Three months ended
(in thousands)	April 2, 2021		March 27, 2020
Total consolidated segment operating income (loss)	$	5,068	$	(9,532)
Unallocated corporate expenses(1)	(7)		(603)
Stock-based compensation	(8,398)		(6,259)
Amortization of intangibles	(507)		(1,655)
Consolidated income (loss) from operations	(3,844)		(18,049)
Non-operating expense, net	(1,584)		(3,176)
Loss before income taxes	$	(5,428)	$	(21,225)

(1) Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments.

Geographic Information

	Three months ended
(in thousands)	April 2, 2021		March 27, 2020
Net revenue (1)
United States	$	67,095	$	34,403
Other countries	44,481		44,014
Total	$	111,576	$	78,417

(1)  Revenue is attributed to countries based on the location of the customer.