Segment Information and Major Customers

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION AND MAJOR CUSTOMERS

SEGMENT INFORMATION AND MAJOR CUSTOMERS

We operate under a single operating and reporting segment.  Our revenue consists of hardware product revenue and service revenue. In an effort to provide further transparency of our financial information, beginning the first quarter of fiscal 2016, we transitioned away from reporting revenue in terms of growth and mature hardware products and now report four product categories: Cellular routers and gateways, Radio Frequency (RF), Embedded and Network. We believe this is a more meaningful presentation and reflects how we are monitoring our revenue.

Our cellular product category includes cellular routers and all gateways, and the RF product category includes XBee^® modules as well as other RF solutions. The embedded product category includes Digi Connect^® and Rabbit^® embedded systems on

5. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

module and single board computers. The network product category, which has the highest concentration of mature products, includes console and serial servers and USB connected devices.

Our service offerings include Cold Chain Solutions, wireless product design and development services, our PaaS recurring revenue generated from Device Cloud platform, and technical support services.

The following table presents our revenue for each product category (in thousands):

	Fiscal years ended September 30,
	2016		2015		2014
Cellular routers and gateways	$	48,373	$	58,666	$	39,215
RF	33,924		34,373		29,094
Embedded	56,489		51,063		49,681
Network	57,315		51,395		54,856
Total product revenue	196,101		195,497		172,846
Service	6,904		8,350		10,327
Total revenue	$	203,005	$	203,847	$	183,173

The information in the following table provides revenue by the geographic location of the customer (in thousands):

	Fiscal years ended September 30,
	2016		2015		2014
North America, primarily United States	$	131,457	$	127,592	$	106,893
Europe, Middle East & Africa	44,932		47,523		47,729
Asia	20,390		22,907		22,762
Latin America	6,226		5,825		5,789
Total revenue	$	203,005	$	203,847	$	183,173

Net property, equipment and improvements by geographic location were as follows (in thousands):

	Fiscal years ended September 30,
	2016		2015		2014
United States	$	13,861	$	14,085	$	12,691
International, primarily Europe	180		254		418
Total net property, equipment and improvements	$	14,041	$	14,339	$	13,109

Our U.S. export sales represented 38.7%, 39.4% and 40.6% of revenue for the fiscal years ended September 30, 2016, 2015 and 2014. No single customer exceeded 10% of revenue for any of the periods presented. No single customer exceeded 10% of total accounts receivable at September 30, 2016. At September 30, 2015, we had two customers, whose accounts receivable balance represented 10.7% and 11.6% of total accounts receivable. No single customer exceeded 10% of total accounts receivable at September 30, 2014.