SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 Broadband. During the third quarter of fiscal 2022, the Company’s Cable Access segment was renamed the Broadband segment to reflect a broader strategic view of the category. There has been no change to the composition of the segment; therefore, no prior periods were restated. 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 Broadband 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)	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Video
Revenue	$	63,824	$	68,729	$	205,881	$	202,415
Gross profit	37,859		42,534		124,679		118,879
Operating income	2,907		7,904		17,317		13,235
Broadband
Revenue	$	91,914	$	57,592	$	254,742	$	148,930
Gross profit	41,343		24,165		107,290		65,111
Operating income	15,303		3,903		33,573		10,191
Total
Revenue	$	155,738	$	126,321	$	460,623	$	351,345
Gross profit	79,202		66,699		231,969		183,990
Operating income	18,210		11,807		50,890		23,426

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

	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Total consolidated segment operating income	$	18,210	$	11,807	$	50,890	$	23,426
Unallocated corporate expenses(1)	(326)		—		(2,227)		(389)
Stock-based compensation	(6,460)		(6,436)		(19,621)		(18,867)
Amortization of intangibles	—		—		—		(507)
Consolidated income from operations	11,424		5,371		29,042		3,663
Non-operating income (expense), net	(1,402)		(2,899)		107		(7,260)
Income (loss) before income taxes	$	10,022	$	2,472	$	29,149	$	(3,597)

(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)	September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Net revenue (1)
United States	$	89,940	$	64,451	$	282,927	$	192,840
Other countries	65,798		61,870		177,696		158,505
Total	$	155,738	$	126,321	$	460,623	$	351,345

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