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 MobilityEngine, 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, 2017, 2016 and 2015 (in thousands):



	For the Years Ended December 31,
	2017		2016		2015
Revenue
Software-Systems	$	47,730	$	56,783	$	55,006
Hardware Solutions	86,038		155,609		129,587
Total revenues	$	133,768	$	212,392	$	184,593



	For the Years Ended December 31,
	2017			2016			2015
Gross margin
Software-Systems	$	25,104		$	34,488		$	31,997
Hardware Solutions	3,530			29,660			28,311
Corporate and other	(7,864		)	(8,060		)	(8,156		)
Total gross margin	$	20,770		$	56,088		$	52,152



	For the Years Ended December 31,
	2017			2016			2015
Income (loss) from operations
Software-Systems	$	(6,968	)	$	(18	)	$	(1,900	)
Hardware Solutions	(18,571		)	9,820			9,709
Corporate and other	(21,244		)	(19,461		)	(21,874		)
Total loss from operations	$	(46,783	)	$	(9,659	)	$	(14,065	)

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,
	2017		2016		2015
United States	$	59,133	$	129,562	$	81,933
Other North America	1,014		219		631
China	10,041		12,129		28,819
Other Asia-Pacific	18,363		25,392		41,836
Total Asia-Pacific	28,404		37,521		70,655
Netherlands	28,124		31,525		14,642
Other EMEA	17,093		13,565		16,732
Total EMEA	45,217		45,090		31,374
Foreign Countries	74,635		82,830		102,660
Total revenues	$	133,768	$	212,392	$	184,593

Long-lived assets by Geographic Area



	For the Years Ended December 31,
	2017		2016
Property and equipment, net
United States	$	2,974	$	4,566
Other North America	33		129
China	163		438
India	1,558		1,580
Total Asia-Pacific	1,721		2,018
Foreign Countries	1,754		2,147
Total property and equipment, net	$	4,728	$	6,713

Intangible assets, net
United States	$	6,862	$	17,575
Total intangible assets, net	$	6,862	$	17,575

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



	2017	2016	2015

Philips Healthcare	23.2%	15.7%	10.0%
Verizon Wireless	20.8%	35.9%	NA
Nokia Solutions and Networks	12.5%	NA	16.0%

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



	2017	2016
Philips Healthcare	19.1%	15.4%
Reliance Jio Infocomm	18.7%	32.6%
Nokia Solutions and Networks	14.5%	NA
Verizon Wireless	NA	10.4%