SEGMENT INFORMATION

9 Months Ended

Oct. 01, 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				Nine Months Ended
(in thousands)	October 1, 2021		September 25, 2020		October 1, 2021		September 25, 2020
Video
Revenue	$	68,729	$	54,641	$	202,415	$	156,466
Gross profit	42,534		29,825		118,879		83,756
Operating income (loss)	7,904		(1,699)		13,235		(12,203)
Cable Access
Revenue	$	57,592	$	40,251	$	148,930	$	90,837
Gross profit	24,165		19,682		65,111		42,224
Operating income	3,903		5,876		10,191		1,733
Total
Revenue	$	126,321	$	94,892	$	351,345	$	247,303
Gross profit	66,699		49,507		183,990		125,980
Operating income (loss)	$	11,807	$	4,177	$	23,426	$	(10,470)

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

	Three Months Ended				Nine Months Ended
(in thousands)	October 1, 2021		September 25, 2020		October 1, 2021		September 25, 2020
Total consolidated segment operating income (loss)	$	11,807	$	4,177	$	23,426	$	(10,470)
Unallocated corporate expenses(1)	—		(1,116)		(389)		(1,803)
Stock-based compensation	(6,436)		(3,930)		(18,867)		(13,737)
Amortization of intangibles	—		(752)		(507)		(3,214)
Consolidated income (loss) from operations	5,371		(1,621)		3,663		(29,224)
Non-operating expense, net	(2,899)		(2,974)		(7,260)		(10,419)
Income (loss) before income taxes	$	2,472	$	(4,595)	$	(3,597)	$	(39,643)

(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				Nine Months Ended
(in thousands)	October 1, 2021		September 25, 2020		October 1, 2021		September 25, 2020
Net revenue (1)
United States	$	64,451	$	44,933	$	192,840	$	114,559
Other countries	61,870		49,959		158,505		132,744
Total	$	126,321	$	94,892	$	351,345	$	247,303

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