Segment Reporting and Geographic Information (Tables)

6 Months Ended

Jun. 30, 2014

Reconciliation of Revenue from Segments to Consolidated

The following table summarizes revenues by segment, including intersegment revenues (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Network Equipment	$	21,833		$	21,100		$	44,152		$	42,046
Network Integration	21,355			17,135			41,408			35,117
Before intersegment adjustments	43,188			38,235			85,560			77,163
Intersegment adjustments	(64		)	(60		)	(118		)	(83		)
Total	$	43,124		$	38,175		$	85,442		$	77,080

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table summarizes external revenue by geographic region (in thousands):



	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
United States	$	13,555	$	13,676	$	26,411	$	25,801
Americas (Excluding the U.S.)	126		855		682		2,480
Europe	26,522		21,869		53,101		45,290
Asia Pacific	2,921		1,775		5,248		3,509
Total	$	43,124	$	38,175	$	85,442	$	77,080

Revenue from external customers attributed to Italy totaled $21.4 million and $17.3 million for the three months ended June 30, 2014 and June 30, 2013 respectively. Revenue from external customers attributed to Italy totaled $41.8 million and $35.4 million for the six months ended June 30, 2014 and June 30, 2013 respectively.

The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands):



	June 30, 2014		December 31, 2013
Americas	$	3,199	$	3,326
Europe	2,017		2,194
Asia Pacific	32		35
Total	$	5,248	$	5,555

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table provides selected Statement of Operations information by business segment (in thousands):



	Three months ended						Six months ended
	June 30,						June 30,
	2014			2013			2014			2013
Gross profit
Network Equipment	$	11,185		$	11,183		$	21,944		$	21,949
Network Integration	3,598			2,187			6,088			4,444
Total before intersegment adjustments	14,783			13,370			28,032			26,393
Corporate unallocated and intersegment adjustments (1)	(1		)	2			1			6
Total	$	14,782		$	13,372		$	28,033		$	26,399

Depreciation expense
Network Equipment	$	433		$	283		$	969		$	583
Network Integration	51			52			100			105
Corporate	20			48			59			96
Total	$	504		$	383		$	1,128		$	784

Operating income (loss)
Network Equipment	$	(1,503	)	$	(296	)	$	(4,343	)	$	(1,415	)
Network Integration	1,704			675			2,550			1,366
Total before intersegment adjustments	201			379			(1,793		)	(49		)
Corporate unallocated operating loss and adjustments (1)	(1,327		)	(914		)	(3,182		)	(4,499		)
Total	$	(1,126	)	$	(535	)	$	(4,975	)	$	(4,548	)

(1) Adjustments reflect the elimination of intersegment revenue and profit in inventory.

Reconciliation of Assets and Other Reconciling Items from Segment to Consolidated

The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands):



	Six months ended
	June 30,
	2014		2013
Additions to Fixed Assets
Network Equipment	$	1,019	$	2,064
Network Integration	74		46
Corporate	83		6
Total	$	1,176	$	2,116



	June 30, 2014		December 31, 2013
Total Assets
Network Equipment	$	44,798	$	48,955
Network Integration	65,288		54,625
Corporate and intersegment eliminations	19,053		24,367
Total	$	129,139	$	127,947