SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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				Six Months Ended
(in thousands)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Video
Revenue	$	58,867	$	76,215	$	116,165	$	142,057
Gross profit	36,303		48,136		70,917		86,820
Operating income (loss)	90		11,271		(1,336)		14,410
Broadband
Revenue	$	97,096	$	81,231	$	197,447	$	162,828
Gross profit	49,076		34,936		99,366		65,947
Operating income	18,066		10,131		38,179		18,270
Total
Revenue	$	155,963	$	157,446	$	313,612	$	304,885
Gross profit	85,379		83,072		170,283		152,767
Operating income	18,156		21,402		36,843		32,680

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

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Total consolidated segment operating income	$	18,156	$	21,402	$	36,843	$	32,680
Unallocated corporate expenses(1)	(2,135)		(745)		(2,218)		(1,901)
Stock-based compensation	(6,059)		(5,575)		(13,483)		(13,161)
Consolidated income from operations	9,962		15,082		21,142		17,618
Non-operating expense, net	(936)		2,880		(1,935)		1,509
Income before income taxes	$	9,026	$	17,962	$	19,207	$	19,127

(1) Together with stock-based compensation, the Company does not allocate restructuring and related charges and other non-recurring expenses 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)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Net revenue (1)
United States	$	101,908	$	106,109	$	207,649	$	192,987
Other countries	54,055		51,337		105,963		111,898
Total	$	155,963	$	157,446	$	313,612	$	304,885

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