Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

During 2014, 2013 and 2012 Company's Chief Operating Decision Maker (CODM), Radisys' Chief Executive Officer, reviewed the Company's results of operations on a consolidated level and executive staff was structured by function rather than by product category. Therefore, the Company was one operating segment. Key resources, decisions, and assessment of performance were also analyzed on a company-wide level.

In 2015, the Company implemented strategic and organizational changes resulting in a strategic focus in two areas: Software-Systems and Embedded Products and Hardware Services. As a result of these changes, the information the Company's Chief Executive Officer, or chief operating decision maker, regularly reviews for purposes of allocating resources and assessing performance changed. Beginning in fiscal year 2015, the Company will report financial performance in two segments: Software- Systems and Embedded Products and Hardware Services.

• Software-Systems (previously referred to as Software and Solutions). Software-Systems product are comprised of three product families: FlowEngine, MediaEngine and CellEngine.

• Embedded Products and Hardware Services (comprising the product-lines previously referred to as ATCA, COMe RMS and Other Products). These hardware based products provide platforms to control and move data in the core of the telecom network.

Cost of sales, research and development and selling, general and administrative expenses are allocated to Software-Systems and Embedded Products and Hardware Services. Expenses, reversals, gains and losses not allocated to Software-Systems or Embedded Product and Hardware Services include amortization of acquired intangible assets, stock-based compensation, restructuring and other charges, and other one-time non-recurring events. These items are allocated to corporate and other.

The Company is providing a supplemental historical reporting of revenue, gross margin and operating income by operating segment for the years ended December 31, 2014, 2013 and 2012 (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
Revenue
Software-Systems	$	40,281	$	44,934	$	52,666
Embedded Products and Hardware Services	152,461		192,929		233,430
Total revenues	$	192,742	$	237,863	$	286,096

	For the Years Ended December 31,
	2014			2013			2012
Gross margin
Software-Systems	$	24,949		$	25,860		$	36,326
Embedded Products and Hardware Services	35,449			47,603			61,642
Corporate and other	(8,596		)	(9,325		)	(9,929		)
Total gross margin	$	51,802		$	64,138		$	88,039

	For the Years Ended December 31,
	2014			2013			2012
Loss from operations
Software-Systems	$	(6,169	)	$	(7,974	)	$	3,735
Embedded Products and Hardware Services	2,457			(25		)	2,661
Corporate and other	(21,588		)	(26,767		)	(46,142		)
Total loss from operations	$	(25,300	)	$	(34,766	)	$	(39,746	)

Assets are not allocated to segments for internal reporting presentations. A portion of depreciation is allocated to the respective segment. It is impracticable for the Company to separately identify the amount of depreciation by segment that is included in the measure of segment profit or loss.

The following table summarizes revenue by product group that the Company has historically disclosed. In 2015, the Company has reorganized into two operating segments, and therefore in the future these product groups will no longer be disclosed. Product group revenues are as follows (in thousands):

	For the Years Ended December 31,
	2014		2013		2012
ATCA	$	91,094	$	116,537	$	136,572
Software and Solutions	40,281		44,934		52,666
COM Express and Rackmount Server	49,660		56,019		49,538
Other Products	11,707		20,373		47,320
Total revenues	$	192,742	$	237,863	$	286,096

Geographic Revenues

	For the Years Ended December 31,
	2014		2013		2012
United States	$	74,630	$	100,780	$	105,858
Other North America	2,079		3,042		3,310
China	31,975		29,818		45,419
Japan	14,848		30,724		39,435
Other APAC	26,329		20,988		31,695
Total APAC	73,152		81,530		116,549
Germany	2,808		11,770		18,580
Netherlands	22,608		19,017		19,896
Other EMEA	17,465		21,724		21,903
Total EMEA	42,881		52,511		60,379
Foreign Countries	118,112		137,083		180,238
Total revenues	$	192,742	$	237,863	$	286,096

Long-lived assets by Geographic Area

	For the Years Ended December 31,
	2014		2013
Property and equipment, net
United States	$	4,558	$	7,421
Other North America	672		942
China	2,427		3,396
Other APAC	11		185
Total APAC	2,438		3,581
India	2,115		2,893
Other EMEA	3		17
Total EMEA	2,118		2,910
Foreign Countries	5,228		7,433
Total property and equipment, net	$	9,786	$	14,854
Intangible assets, net
United States	$	43,224	$	56,474
Other North America	—		36
Total intangible assets, net	$	43,224	$	56,510

The following customers accounted for more than 10% of total revenues for the years ended December 31:

	2014	2013	2012
Nokia Solutions and Networks	17.0%	18.7%	22.5%
Philips Healthcare	14.9%	NA	NA
NEC	NA	NA	11.1%

The following customer accounted for more than 10% of accounts receivable for the years ended December 31:

	2014	2013
Nokia Solutions and Networks	18.5%	20.7%
Philips Healthcare	13.9%	NA