Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Information

During the first quarter of 2015, the Company implemented strategic and organizational changes that resulted in measuring the performance of the Company's business in two segments: Software-Systems and Embedded Products and Hardware Services. The Company's Chief Executive Officer, or chief operating decision maker, regularly reviews discrete financial information for purposes of allocating resources and assessing the performance of each segment:

• Software-Systems. Software-Systems products are comprised of three product lines: FlowEngine, MediaEngine and CellEngine.

• Embedded Products and Hardware Services. 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 recorded the following revenues, gross margin and income (loss) from operations by operating segment for the three and nine months ended September 30, 2015 and 2014 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenue
Software-Systems	$	15,477	$	11,620	$	39,336	$	29,861
Embedded Products and Hardware Services	29,303		39,185		101,180		114,707
Total revenues	$	44,780	$	50,805	$	140,516	$	144,568

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Gross margin
Software-Systems	$	9,081		$	7,857		$	22,354		$	18,871
Embedded Products and Hardware Services	5,973			8,940			22,043			25,472
Corporate and other	(2,047		)	(2,100		)	(6,163		)	(6,491		)
Total gross margin	$	13,007		$	14,697		$	38,234		$	37,852

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Income (loss) from operations
Software-Systems	$	743		$	13		$	(3,126	)	$	(4,699	)
Embedded Products and Hardware Services	1,782			1,307			8,112			488
Corporate and other	(4,541		)	(5,423		)	(17,528		)	(16,785		)
Total loss from operations	$	(2,016	)	$	(4,103	)	$	(12,542	)	$	(20,996	)

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.

Revenues by geographic area were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
United States	$	18,353	$	17,476	$	57,997	$	52,207
Other North America	186		254		473		1,957
China	5,859		7,172		26,414		22,152
India	6,549		5,878		12,494		7,505
Other Asia Pacific	6,798		8,253		19,108		24,741
Asia Pacific ("APAC")	19,206		21,303		58,016		54,398
Netherlands	3,404		7,861		10,591		19,030
Other EMEA	3,631		3,911		13,439		16,976
Europe, the Middle East and Africa (“EMEA”)	7,035		11,772		24,030		36,006
Foreign Countries	26,427		33,329		82,519		92,361
Total	$	44,780	$	50,805	$	140,516	$	144,568

Long-lived assets by geographic area are as follows (in thousands):

	September 30, 2015		December 31, 2014
Property and equipment, net
United States	$	3,381	$	4,558
Other North America	308		672
China	1,447		2,427
Other APAC	—		11
Total APAC	1,447		2,438
India	1,690		2,115
Other EMEA	2		3
Total EMEA	1,692		2,118
Foreign Countries	3,447		5,228
Total property and equipment, net	$	6,828	$	9,786
Intangible assets, net
United States	$	33,509	$	43,224
Total intangible assets, net	$	33,509	$	43,224

The following customers accounted for more than 10% of the Company's total revenues:
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Nokia Networks	14.1	%	13.0	%	19.5	%	16.5	%
Philips Healthcare	N/A		18.7	%	N/A		16.4	%
An Asian Carrier	14.2	%	10.6	%	N/A		N/A

The following customers accounted for more than 10% of accounts receivable:
	September 30, 2015		December 31, 2014
Nokia Networks	N/A		18.5	%
Philips Healthcare	N/A		13.9	%
An Asian Carrier	25.7	%	N/A
Sanmina SCI Corp (A)	10.0	%	N/A