Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is made up of two operating segments: Software-Systems and Hardware Solutions. 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, each of which delivers software-centric solutions to network service providers.

• Hardware Solutions. Hardware Solutions includes the Company's DCEngine products and legacy embedded product portfolio which includes hardware solutions targeted for service providers.

Cost of sales, research and development and selling, general and administrative expenses are allocated to Software-Systems and Hardware Solutions. Expenses, reversals, gains and losses not allocated to Software-Systems or Hardware Solutions 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, 2016, 2015 and 2014 (in thousands):

	For the Years Ended December 31,
	2016		2015		2014
Revenue
Software-Systems	$	56,783	$	55,006	$	40,281
Hardware Solutions	155,609		129,587		152,461
Total revenues	$	212,392	$	184,593	$	192,742

	For the Years Ended December 31,
	2016			2015			2014
Gross margin
Software-Systems	$	34,488		$	31,997		$	24,949
Hardware Solutions	29,660			28,311			35,449
Corporate and other	(8,060		)	(8,156		)	(8,596		)
Total gross margin	$	56,088		$	52,152		$	51,802

	For the Years Ended December 31,
	2016			2015			2014
Income (loss) from operations
Software-Systems	$	(18	)	$	(1,900	)	$	(6,169	)
Hardware Solutions	9,820			9,709			2,457
Corporate and other	(19,461		)	(21,874		)	(21,588		)
Total loss from operations	$	(9,659	)	$	(14,065	)	$	(25,300	)

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,
	2016		2015		2014
United States	$	129,562	$	81,933	$	74,630
Other North America	219		631		2,079
China	12,129		28,819		31,975
Other APAC	25,392		41,836		41,177
Total APAC	37,521		70,655		73,152
Netherlands	31,525		14,642		22,608
Other EMEA	13,565		16,732		20,273
Total EMEA	45,090		31,374		42,881
Foreign Countries	82,830		102,660		118,112
Total revenues	$	212,392	$	184,593	$	192,742

Long-lived assets by Geographic Area

	For the Years Ended December 31,
	2016		2015
Property and equipment, net
United States	$	4,566	$	3,061
Other North America	129		257
China	438		1,231
India	1,580		1,584
Total APAC	2,018		2,815
EMEA	—		1
Foreign Countries	2,147		3,073
Total property and equipment, net	$	6,713	$	6,134
Intangible assets, net
United States	$	17,575	$	30,322
Total intangible assets, net	$	17,575	$	30,322

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

	2016	2015	2014
Verizon Wireless	35.9%	NA	NA
Philips Healthcare	15.7%	10.0%	14.9%
Nokia Solutions and Networks	NA	16.0%	17.0%

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

	2016	2015
Reliance Jio Infocomm	32.6%	14.7%
Philips Healthcare	15.4%	NA
Verizon Wireless	10.4%	36.0%