Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is made up of two operating 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 is 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 years ended December 31, 2015, 2014 and 2013 (in thousands):

	For the Years Ended December 31,
	2015		2014		2013
Revenue
Software-Systems	$	55,006	$	40,281	$	44,934
Embedded Products and Hardware Services	129,587		152,461		192,929
Total revenues	$	184,593	$	192,742	$	237,863

	For the Years Ended December 31,
	2015			2014			2013
Gross margin
Software-Systems	$	31,997		$	24,949		$	25,860
Embedded Products and Hardware Services	28,311			35,449			47,603
Corporate and other	(8,156		)	(8,596		)	(9,325		)
Total gross margin	$	52,152		$	51,802		$	64,138

	For the Years Ended December 31,
	2015			2014			2013
Loss from operations
Software-Systems	$	(1,900	)	$	(6,169	)	$	(7,974	)
Embedded Products and Hardware Services	9,709			2,457			(25		)
Corporate and other	(21,874		)	(21,588		)	(26,767		)
Total loss from operations	$	(14,065	)	$	(25,300	)	$	(34,766	)

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 fixed assets by segment whose depreciation is included in the measure of segment profit or loss.

Geographic Revenues

	For the Years Ended December 31,
	2015		2014		2013
United States	$	81,933	$	74,630	$	100,780
Other North America	631		2,079		3,042
China	28,819		31,975		29,818
Japan	13,574		14,848		30,724
Other APAC	28,262		26,329		20,988
Total APAC	70,655		73,152		81,530
Netherlands	14,642		22,608		19,017
Other EMEA	16,732		20,273		33,494
Total EMEA	31,374		42,881		52,511
Foreign Countries	102,660		118,112		137,083
Total revenues	$	184,593	$	192,742	$	237,863

Long-lived assets by Geographic Area

	For the Years Ended December 31,
	2015		2014
Property and equipment, net
United States	$	3,061	$	4,558
Other North America	257		672
China	1,231		2,427
Other APAC	—		11
Total APAC	1,231		2,438
India	1,584		2,115
Other EMEA	1		3
Total EMEA	1,585		2,118
Foreign Countries	3,073		5,228
Total property and equipment, net	$	6,134	$	9,786
Intangible assets, net
United States	$	30,322	$	43,224
Total intangible assets, net	$	30,322	$	43,224

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

	2015	2014	2013
Nokia Solutions and Networks	16.0%	17.0%	18.7%
Philips Healthcare	10.0%	14.9%	NA

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

	2015	2014
Tier-one U.S. carrier	36.0%	NA
Reliance Jio Infocomm	14.7%	NA
Nokia Solutions and Networks	NA	18.5%
Philips Healthcare	NA	13.9%