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Segment Information and Major Customers
 12 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND MAJOR CUSTOMERS SEGMENT INFORMATION AND MAJOR CUSTOMERS
We have two reportable operating segments: (i) IoT Products & Services and (ii) IoT Solutions. This determination was made by considering both qualitative and quantitative information. The qualitative information included, but was not limited to, the following: the nature of the products and services and customers differ between the two segments, discrete financial information is available through operating income for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information separately to make decisions about the allocation of resources. Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is now structured to include four operating segments, each with a segment manager. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units; Ventus and SmartSense. We have six reporting units that have been tested individually for impairment.
IoT Products & Services
Our IoT Products & Services segment is composed of the following four operating segments:
•Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications.
•Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications exclusively using cellular communications.
•OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone chip, or from a systems-on-module ("SOMs"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application.
•Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications.
IoT Solutions
Following the acquisition of Ventus on November 1, 2021, IoT Solutions is now comprised of two operating segments:
•SmartSense - offers wireless temperature and other condition-based monitoring services for perishable goods such as food or medicine, as well as employee task management services.
•Ventus - provides MNaaS solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions.
We measure our segment results primarily by reference to revenue and gross profit. IoT Solutions revenue includes product, service and subscription revenue.
The operating segments included in each reportable segment have similar qualitative and quantitative factors, which allow us to aggregate them under each reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating margins. Our chief operating decision maker reviews and makes business decisions which includes a primary review of operating income but also includes gross profit. Following the October 2020 reorganization, the shared general and administrative costs are now being allocated to each operating segment. As a result, our disclosed measure of segment operating income has been updated for all periods presented to conform with this change.
4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
Summary operating results for each of our segments were as follows (in thousands):
Year ended September 30,
202220212020
Revenue
IoT Products & Services$297,645 $264,173 $249,530 
IoT Solutions90,580 44,459 29,741 
Total revenue$388,225 $308,632 $279,271 
Gross Profit
IoT Products & Services$160,117 $144,472 $129,349 
IoT Solutions56,169 22,185 14,623 
Total gross profit$216,286 $166,657 $143,972 
Operating Income (loss)
IoT Products & Services$41,562 $18,212 $27,216 
IoT Solutions(3,342)(7,684)(15,899)
Total operating income$38,220 $10,528 $11,317 
Depreciation and Amortization
IoT Products & Services$13,974 $13,109 $11,521 
IoT Solutions19,865 7,768 7,778 
Total depreciation and amortization$33,839 $20,877 $19,299 
Total expended for property, plant and equipment was as follows (in thousands):
Year ended September 30,
202220212020
IoT Products & Services$1,952 $2,257 $878 
IoT Solutions*22 — 21 
Total expended for property, plant and equipment$1,974 $2,257 $899 
* Excluded from this amount is $6.2 million, $1.8 million and $1.4 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2022, 2021 and 2020, respectively.
Total assets for each of our segments were as follows (in thousands):
As of September 30,
20222021
IoT Products & Services$390,128 $386,934 
IoT Solutions428,867 80,165 
Unallocated*34,900 152,432 
Total assets$853,895 $619,531 
*Unallocated consists of cash and cash equivalents.
4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
Net property, equipment and improvements by geographic location were as follows (in thousands):
As of September 30,
20222021
United States$27,205 $11,941 
International, primarily Europe389 191 
Total net property, equipment and improvements$27,594 $12,132 
Our U.S. export sales represented 22.1%, 26.2% and 25.1% of revenue for the fiscal years ended September 30, 2022, 2021 and 2020. No single customer exceeded 10% of revenue or accounts receivable for any of the periods presented.