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Segment Information
 6 Months Ended
Mar. 31, 2024
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, Console Servers, OEM Solutions and Infrastructure Management. IoT Products & Services derives revenue from the sale of connectivity products and solutions. These products and solutions include enclosed router devices in Cellular Routers, enclosed devices for edge computing and data center applications in Console Servers, chip modules in OEM Solutions and sensors in Infrastructure Management, as well as our cloud based remote manager application and extended support and monitoring of devices sold. IoT Solutions is comprised of two operating segments, SmartSense and Ventus. IoT Solutions derives revenue from the sale of monitoring and networking service solutions. These solutions include wireless condition-based monitoring services in SmartSense and Managed Network-as-a-Service ("MNaaS") in Ventus.
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 economic characteristics.
Our CEO is our Chief Operating Decision Maker ("CODM"). The measure the CODM uses to measure profitability within our IoT Products & Services reportable segment is segment operating income and segment operating income as a percentage of revenue. IoT Products & Services segment operating income excludes certain costs that are directly attributable to reportable segments, which are unallocated to the operating segments. These costs are primarily inventory adjustments on component balances that are common and shared by all operating segments within the IoT Products & Services reportable segment.
The measure the CODM uses to measure profitability within our IoT Solutions reportable segment is segment gross profit and segment gross profit as a percentage of revenue. IoT Solutions segment gross profit excludes certain costs that are directly attributable to reportable segments, which are unallocated to the operating segments. These costs are primarily inventory adjustments on component balances that are common and shared by all operating segments within the IoT Solutions reportable segment.
Immaterial Correction of Prior Period Financial Statements
Subsequent to the issuance of the Company's financial statements for the year ended September 30, 2023, the Company discovered a disclosure error related to the measure of profit and loss previously disclosed. ASC 280-10-50-22 requires the disclosure of the measure of profit or loss as reviewed by the CODM. Our CODM reviews the measures of profit for each operating segment excluding certain costs that are directly attributable to reportable segments, which are unallocated to the operating segments. As a result, the Company has corrected the disclosure to separately disclose the unallocated expenses outside of the IoT Products & Services and IoT Solutions segments gross profit and operating income (loss) amounts. The errors have no impact on the consolidated balance sheet, consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows. Management has evaluated the misstatement and concluded it was not material to prior periods. The comparable second fiscal quarter 2023 amounts have been corrected to reflect the correct amounts for comparative purposes and the information presented below includes the corrected disclosure for the three and six months ended March 31, 2023. The Company will also correct previously reported financial information for such immaterial errors in future filings, as applicable (see "Part II, Item 5. Other Information" below for additional information).
6. SEGMENT INFORMATION (CONTINUED)
Summary operating results for each of our segments were (in thousands):
Three months ended March 31,Six months ended March 31,
2024202320242023
Revenue
IoT Products & Services$83,390 $85,893 $165,413 $170,235 
IoT Solutions24,312 25,251 48,378 50,215 
Total revenue$107,702 $111,144 $213,791 $220,450 
Gross Profit
IoT Products & Services Operating Segments Gross Profit$45,061 $47,477 $90,255 $94,151 
Unallocated IoT Products & Services Expenses— (360)(1,335)(1,013)
Total IoT Products & Services Segment Gross Profit45,061 47,117 88,920 93,138 
IoT Solutions Operating Segments Gross Profit17,257 16,377 34,498 32,503 
Unallocated IoT Solutions Expenses— (622)— (1,248)
Total IoT Solutions Segment Gross Profit17,257 15,755 34,498 31,255 
Total gross profit$62,318 $62,872 $123,418 $124,393 
Operating Income (Loss)
IoT Products & Services Operating Segments Operating Income$13,643 $14,239 $25,343 $28,654 
Unallocated IoT Products & Services Expenses(11)(1,274)(1,370)(3,006)
Total IoT Products & Services Segment Operating Income13,632 12,965 23,973 25,648 
IoT Solutions Operating Segments Operating (Loss) Income(5,481)(14)(3,689)16 
Unallocated IoT Solutions Expenses— (776)— (1,526)
Total IoT Solutions Segment Operating Loss(5,481)(790)(3,689)(1,510)
Total operating income$8,151 $12,175 $20,284 $24,138 
Depreciation and Amortization
IoT Products & Services$3,107 $3,046 $6,205 $6,338 
IoT Solutions4,958 4,800 9,911 9,620 
Total depreciation and amortization$8,065 $7,846 $16,116 $15,958 
Total expended for property, plant and equipment was (in thousands):
Six months ended March 31,
20242023
IoT Products & Services$336 $2,260 
IoT Solutions*333 508 
Total expended for property, plant and equipment$669 $2,768 
* Excluded from these amounts are $4,046 and $2,685 of transfers of inventory to property plant and equipment for subscriber assets for the six months ended March 31, 2024 and 2023, respectively.
Total assets for each of our segments were (in thousands):
March 31,
2024		September 30,
2023
IoT Products & Services$393,805 $384,018 
IoT Solutions407,700 419,820 
Unallocated*23,795 31,693 
Total assets$825,300 $835,531 
*Unallocated consists of cash and cash equivalents.