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Segment Information
 9 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have two reportable segments: IoT Products & Services and IoT Solutions. IoT Products & Services 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; and
•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 June 30,Nine months ended June 30,
2023202220232022
Revenue
IoT Products & Services$87,358 $79,758 $257,593 $216,872 
IoT Solutions24,878 23,759 75,093 65,615 
Total revenue$112,236 $103,517 $332,686 $282,487 
Gross Profit
IoT Products & Services$47,229 $42,643 $140,367 $116,779 
IoT Solutions16,590 14,783 47,845 40,512 
Total gross profit$63,819 $57,426 $188,212 $157,291 
Operating Income (Loss)
IoT Products & Services$12,096 $10,881 $37,744 $24,046 
IoT Solutions380 (907)(1,130)(2,709)
Total operating income$12,476 $9,974 $36,614 $21,337 
Depreciation and Amortization
IoT Products & Services$3,108 $3,471 $9,446 $10,633 
IoT Solutions4,896 5,276 14,516 14,760 
Total depreciation and amortization$8,004 $8,747 $23,962 $25,393 
8. SEGMENT INFORMATION (CONTINUED)
Total expended for property, plant and equipment was (in thousands):
Nine months ended June 30,
20232022
IoT Products & Services$362 $1,722 
IoT Solutions*3,291 2,496 
Total expended for property, plant and equipment$3,653 $4,218 
* Excluded from these amounts are $3,175 and $1,742 of transfers of inventory to property plant and equipment for subscriber assets for the nine months ended June 30, 2023 and 2022, respectively.
Total assets for each of our segments were (in thousands):
June 30,
2023		September 30,
2022
IoT Products & Services$387,371 $390,128 
IoT Solutions423,109 428,867 
Unallocated*29,580 34,900 
Total assets$840,060 $853,895 
*Unallocated consists of cash and cash equivalents.