SEGMENT INFORMATION

6 Months Ended

Jul. 01, 2022

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 regularly by the Company’s Chief Operating Decision Maker (the “CODM”), in deciding how to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer. 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				Six Months Ended
(in thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Video
Revenue	$	76,215	$	63,355	$	142,057	$	133,686
Gross profit	48,136		37,571		86,820		76,345
Operating income	11,271		1,559		14,410		5,331
Cable Access
Revenue	$	81,231	$	50,093	$	162,828	$	91,338
Gross profit	34,936		23,538		65,947		40,946
Operating income	10,131		4,992		18,270		6,288
Total
Revenue	$	157,446	$	113,448	$	304,885	$	225,024
Gross profit	83,072		61,109		152,767		117,291
Operating income	21,402		6,551		32,680		11,619

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

	Three Months Ended				Six Months Ended
(in thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Total consolidated segment operating income	$	21,402	$	6,551	$	32,680	$	11,619
Unallocated corporate expenses(1)	(745)		(382)		(1,901)		(389)
Stock-based compensation	(5,575)		(4,033)		(13,161)		(12,431)
Amortization of intangibles	—		—		—		(507)
Consolidated income (loss) from operations	15,082		2,136		17,618		(1,708)
Non-operating expense, net	2,880		(2,777)		1,509		(4,361)
Income (loss) before income taxes	$	17,962	$	(641)	$	19,127	$	(6,069)

(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				Six Months Ended
(in thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Net revenue (1)
United States	$	106,109	$	61,294	$	192,987	$	128,389
Other countries	51,337		52,154		111,898		96,635
Total	$	157,446	$	113,448	$	304,885	$	225,024

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