CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

The Group applies ASC 280, "Segment Reporting" ("ASC 280"). Segments are managed separately and can be described as follows:

Commencing 2012, in accordance with the Company's organizational changes instituted at the beginning of 2012, the Company's business is managed and reported as three separate reportable segments, comprised of the Company's newly named Commercial, Defense and Services divisions. Segment information for 2011 and 2010, was restated to conform to the new reporting segments:

· Commercial Division provides VSAT networks, satellite communication products and associated professional services to service providers and operators worldwide, including consumer Ka-band initiatives worldwide.

· Defense Division provides satellite communication products and solutions to defense and homeland security organizations worldwide and also includes Wavestream, which provides its products mainly to defense and homeland security organizations.

· Service division, which includes Spacenet, provides managed network services for business, government and residential customers in North America, as well as service businesses in Peru and Colombia, which offer rural telephony and Internet access solutions.

a. Information on the reportable segments:

1. The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements.

2. Financial data relating to reportable operating segments:

	Year ended December 31, 2012
	Commercial		Defense			Services		Total
Revenues		158,882		55,371			134,110		348,363
Cost of Revenues		97,310		40,998			97,055		235,363
Gross profit		61,572		14,373			37,055		113,000
R&D expenses:
Expenses incurred		19,561		12,735			-		32,296
Less - grants		2,261		794			-		3,055
		17,300		11,941			-		29,241
Selling and marketing		24,184		9,128			9,319		42,631
General and administrative		11,221		4,940			17,914		34,075
Impairment of goodwill and intangible assets and restructuring costs		219		31,975			-		32,194
Operating income (loss)		8,648		(43,611	)		9,822		(25,141	)
Financial expenses, net									(2,642	)
Other income									2,729
Loss before taxes									(25,054	)
Tax benefit									(1,862	)
Net loss									(23,192	)
Depreciation and amortization expenses		4,960		9,723			7,899		22,582

	Year ended December 31, 2011
	Commercial		Defense			Services		Total
Revenues		117,185		79,252			142,764		339,201
Cost of Revenues		61,363		51,401			104,810		217,574
Gross profit		55,822		27,851			37,954		121,627
R&D expenses:
Expenses incurred		19,210		15,866			-		35,076
Less - grants		2,775		600			-		3,375
		16,435		15,266			-		31,701
Selling and marketing		22,262		10,973			13,288		46,523
General and administrative		11,666		6,348			17,991		36,005
Costs related to acquisition transactions		39		-			217		256
Impairment of goodwill and intangible assets and restructuring costs		78		18,166			1,234		19,478
Operating income (loss)		5,342		(22,902	)		5,224		(12,336	)
Financial expenses, net									(1,931	)
Other income									8,074
Loss before taxes									(6,193	)
Tax benefit									(343	)
Net loss									(5,850	)
Depreciation and amortization expenses		4,755		10,115			9,251		24,121

	Year ended December 31, 2010
	Commercial		Defense			Services			Total
Revenues		100,932		19,499			112,554			232,985
Cost of Revenues		47,543		11,214			94,374			153,131
Gross profit		53,389		8,285			18,180			79,854
R&D expenses:
Expenses incurred		17,981		4,213			-			22,194
Less - grants		2,816		433			-			3,249
		15,165		3,780			-			18,945
Selling and marketing		19,554		2,695			11,147			33,396
General and administrative		10,074		3,089			16,681			29,844
Costs related to acquisition transactions		-		3,842			-			3,842
Operating income (loss)		8,596		(5,121	)		(9,648	)		(6,173	)
Financial expenses, net										(557	)
Other income										37,360
Loss before taxes										30,630
Taxes on income										11
Net loss										30,619
Depreciation and amortization expenses		5,406		1,950			7,438			14,794

b. Revenues by geographic areas:

Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:

	Year ended December 31,
	2012		2011		2010
North America	$	115,884	$	156,326	$	83,314
South America and Central America		115,190		100,457		84,388
Asia and Asia Pacific		84,482		51,554		36,350
Europe		23,906		21,126		12,693
Africa		8,901		9,738		16,240
	$	348,363	$	339,201	$	232,985

c. Net revenues from two major customers located in Australia and in Latin America accounted for 14% and 10% of total consolidated revenues for the year ended December 31, 2012, respectively.

During 2011 and 2010, the Group did not have any single customer or country generating revenues exceeding 10% of the Group's total revenues.

d. The Group's long-lived assets are located as follows:

	December 31,
	2012		2011
Israel	$	71,283	$	73,760
Latin America		4,174		4,867
United States		9,693		12,490
Europe		9,059		9,197
Other		518		612
	$	94,727	$	100,926