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Segment Information
6 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have two reportable segments: IoT Products & Services and IoT Solutions. Our IoT Products & Services business is structured to include four operating segments, each with a segment manager. These four operating segments are:
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 (also 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 module or from a systems-on-module ("SOM"). 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.
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 Managed Network-as-a-Service ("MNaaS") solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions.
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 CEO is our Chief Operating Decision Maker and reviews and makes business decisions using consolidated information including operating income and gross profit.
Summary operating results for each of our segments were (in thousands):
Three months ended March 31,Six months ended March 31,
2023202220232022
Revenue
IoT Products & Services$85,893 $71,370 $170,235 $137,114 
IoT Solutions25,251 23,343 50,215 41,856 
Total revenue$111,144 $94,713 $220,450 $178,970 
Gross Profit
IoT Products & Services$47,117 $38,461 $93,138 $74,136 
IoT Solutions15,755 13,523 31,255 25,729 
Total gross profit$62,872 $51,984 $124,393 $99,865 
Operating Income (Loss)
IoT Products & Services$12,965 $9,049 $25,648 $13,165 
IoT Solutions(790)(1,485)(1,510)(1,802)
Total operating income$12,175 $7,564 $24,138 $11,363 
Depreciation and Amortization
IoT Products & Services$3,046 $3,533 $6,338 $7,162 
IoT Solutions4,800 5,251 9,620 9,484 
Total depreciation and amortization$7,846 $8,784 $15,958 $16,646 
8. SEGMENT INFORMATION (CONTINUED)
Total expended for property, plant and equipment was (in thousands):
Six months ended March 31,
20232022
IoT Products & Services$2,260 $1,664 
IoT Solutions*508 — 
Total expended for property, plant and equipment$2,768 $1,664 
* Excluded from this amount is $2,685 and $1,215 of transfers of inventory to property plant and equipment for subscriber assets for the six months ended March 31, 2023 and 2022, respectively.
Total assets for each of our segments were (in thousands):
March 31,
2023
September 30,
2022
IoT Products & Services$390,753 $390,128 
IoT Solutions425,335 428,867 
Unallocated*31,660 34,900 
Total assets$847,748 $853,895 
*Unallocated consists of cash and cash equivalents.