Segment Information

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure

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 service providers on a direct and indirect basis.

• Hardware Solutions. Hardware Solutions includes the Company's embedded product portfolio and DCEngine products lines.

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 three and nine months ended March 31, 2018 and 2017 (in thousands):

	Three Months Ended
	March 31,
	2018		2017
Revenue
Software-Systems	$	11,148	$	10,149
Hardware Solutions	15,042		27,461
Total revenues	$	26,190	$	37,610

	Three Months Ended
	March 31,
	2018			2017
Gross margin
Software-Systems	$	5,486		$	5,465
Hardware Solutions	3,107			4,781
Corporate and other	(1,625		)	(2,024		)
Total gross margin	$	6,968		$	8,222

	Three Months Ended
	March 31,
	2018			2017
Income (loss) from operations
Software-Systems	$	(3,121	)	$	(3,273	)
Hardware Solutions	1,008			(1,286		)
Corporate and other	(3,708		)	(4,576		)
Total loss from operations	$	(5,821	)	$	(9,135	)

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.

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

	Three Months Ended
	March 31,
	2018		2017
United States	$	8,621	$	23,152
Other North America	152		19
Asia Pacific ("APAC")	5,202		5,419
Netherlands	7,704		5,223
Other EMEA	4,511		3,797
Europe, the Middle East and Africa (“EMEA”)	12,215		9,020
Foreign Countries	17,569		14,458
Total	$	26,190	$	37,610

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

	March 31, 2018		December 31, 2017
Property and equipment, net
United States	$	2,699	$	2,974
Other North America	19		33
China	74		163
India	1,339		1,558
Total APAC	1,413		1,721
Foreign Countries	1,432		1,754
Total property and equipment, net	$	4,131	$	4,728
Intangible assets, net
United States	$	4,737	$	6,862
Total intangible assets, net	$	4,737	$	6,862

The following customers accounted for more than 10% of the Company's total revenues:
	Three Months Ended
	March 31,
	2018		2017
Customer A	40.7	%	15.0	%
Customer C	12.5	%	N/A
Customer D	N/A		41.2	%

The following customers accounted for more than 10% of accounts receivable:
	March 31, 2018		December 31, 2017
Customer A	33.4	%	19.1	%
Customer B	21.5	%	18.7	%
Customer C	15.1	%	14.5	%