Segment Reporting and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2014

Reconciliation of Revenue from Segments to Consolidated

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Network Equipment	$	21,979		$	22,806		$	66,131		$	64,852
Network Integration	21,237			15,585			62,644			50,701
Before intersegment adjustments	43,216			38,391			128,775			115,553
Intersegment adjustments	(46		)	(6		)	(163		)	(88		)
Total	$	43,170		$	38,385		$	128,612		$	115,465

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				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
United States	$	13,254	$	15,010	$	39,665	$	40,811
Americas (Excluding the U.S.)	197		972		879		3,452
Europe	25,553		21,275		78,653		66,565
Asia Pacific	4,166		1,128		9,415		4,637
Total	$	43,170	$	38,385	$	128,612	$	115,465

Revenue from external customers attributed to Italy totaled $21.2 million and $16.0 million for the three months ended September 30, 2014, and September 30, 2013 respectively. Revenue from external customers attributed to Italy totaled $63.0 million and $51.5 million for the nine months ended September 30, 2014, and September 30, 2013 respectively.

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



	September 30, 2014		December 31, 2013
Americas	$	3,256	$	3,326
Europe	1,874		2,194
Asia Pacific	29		35
Total	$	5,159	$	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						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Gross profit
Network Equipment	$	11,062		$	12,041		$	33,007		$	33,990
Network Integration	3,654			2,934			9,742			7,378
Total before intersegment adjustments	14,716			14,975			42,749			41,368
Corporate unallocated and intersegment adjustments (1)	—			(1		)	—			5
Total	$	14,716		$	14,974		$	42,749		$	41,373

Depreciation expense
Network Equipment	$	459		$	406		$	1,428		$	988
Network Integration	50			54			149			159
Corporate	52			45			111			141
Total	$	561		$	505		$	1,688		$	1,288

Operating income (loss)
Network Equipment	$	(953	)	$	87		$	(5,296	)	$	(1,328	)
Network Integration	1,762			1,525			4,311			2,891
Total before intersegment adjustments	809			1,612			(985		)	1,563
Corporate unallocated operating loss and adjustments (1)	(1,233		)	(1,573		)	(4,414		)	(6,072		)
Total	$	(424	)	$	39		$	(5,399	)	$	(4,509	)

(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):



	Nine months ended
	September 30,
	2014		2013
Additions to Fixed Assets
Network Equipment	$	1,736	$	2,679
Network Integration	95		53
Corporate	83		6
Total	$	1,914	$	2,738



	September 30, 2014		December 31, 2013
Total Assets
Network Equipment	$	42,457	$	48,955
Network Integration	58,259		54,625
Corporate and intersegment eliminations	18,167		24,367
Total	$	118,883	$	127,947