SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONOperating 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”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Video and Broadband. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telecommunications (“telco”) Pay-TV service providers. The Broadband segment provides broadband access solutions and related services to broadband 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)	March 31, 2023		April 1, 2022
Video
Revenue	$	57,298	$	65,842
Gross profit	34,614		38,684
Operating income (loss)	(1,426)		3,139
Broadband
Revenue	$	100,351	$	81,597
Gross profit	50,290		31,011
Operating income	20,113		8,139
Total
Revenue	$	157,649	$	147,439
Gross profit	84,904		69,695
Operating income	18,687		11,278

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

	Three Months Ended
(in thousands)	March 31, 2023		April 1, 2022
Total consolidated segment operating income	$	18,687	$	11,278
Unallocated corporate expenses(1)	(83)		(1,156)
Stock-based compensation	(7,424)		(7,586)
Consolidated income from operations	11,180		2,536
Non-operating expense, net	(999)		(1,371)
Income before income taxes	$	10,181	$	1,165

(1) Together with 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)	March 31, 2023		April 1, 2022
Net revenue (1)
United States	$	105,741	$	86,878
Other countries	51,908		60,561
Total	$	157,649	$	147,439

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