CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 14:- 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 in 2012, in accordance with the Company organizational changes instituted that year, the Company's business is managed and reported as three separate reportable segments, comprised of the  Company's named Commercial, Mobility (previously named Defense) and Services Divisions:

• Commercial Division - provides VSAT networks, satellite communication products, small cell solutions and associated professional services to service providers, satellite operators and Mobile Network Operators (MNOs) worldwide, including for high throughput satellites, or HTS, initiatives worldwide.
• Mobility Division provides on-the-Move / on-the-Pause satellite communication products and solutions to system integrators, defense and homeland security organizations worldwide and also includes the operations of Wavestream Corporation, or Wavestream, our subsidiary, whose sales are primarily to system integrators, defense and homeland security organizations.
• Service Division comprised of 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 which includes certain corporate overhead allocations. During 2014, the Company revised the measurement of each segment, due to a new allocation of corporate overhead that was based on new key performance indicators determined by Company's management as reviewed by the Chief Operating Decision Maker (“CODM”). Applying the same method of corporate overhead allocations used in 2014 to the results of the year ended December 31, 2013 would result in an operating income (loss) of $ (2,292), $ (10,738) and $ 8,937 for the Commercial, Mobility and Services segments, respectively and would have no effect on the operating income of the segments in the year ended December 31, 2012.

2.   Financial data relating to reportable operating segments:

	Year ended December 31, 2014
	Commercial		Mobility		Services		Total
Revenues		130,306		54,817		50,010		235,133
Cost of Revenues		77,587		37,023		36,888		151,498
Gross profit		52,719		17,794		13,122		83,635
R&D expenses:
Expenses incurred		19,099		8,536		-		27,635
Less - grants		2,015		462		-		2,477
		17,084		8,074		-		25,158
Selling and marketing		23,401		7,809		1,327		32,537
General and administrative		7,808		5,961		7,134		20,903
Operating income (loss)		4,426		(4,050)		4,661		5,037
Financial expenses, net								(3,837)
Incomebefore taxes								1,200
Taxes on income								1,901
Net loss from continuing operations								(701)
Net loss from discontinued operations								(795)
Net loss								(1,496)
Depreciation and amortization expenses		4,885		8,220		2,846		15,951

	Year ended December 31, 2013
	Commercial		Mobility		Services		Total
Revenues		141,576		48,211		45,079		234,866
Cost of Revenues		94,966		33,773		26,471		155,210
Gross profit		46,610		14,438		18,608		79,656
R&D expenses:
Expenses incurred		18,403		11,088		-		29,491
Less - grants		1,203		388		-		1,591
		17,200		10,700		-		27,900
Selling and marketing		22,759		8,139		1,316		32,214
General and administrative		9,973		7,744		5,354		23,071
Restructuring costs		406		158		-		564
Operating income (loss)		(3,728)		(12,303)		11,938		(4,093)
Financial expenses, net								(6,239)
Loss before taxes								(10,332)
Tax benefit								(755)
Net loss from continuing operations								(9,577)
Net loss from discontinued operations								(8,320)
Net loss								(17,897)
Depreciation and amortization expenses		4,996		8,469		4,094		17,559

	Year ended December 31, 2012
	Commercial		Mobility		Services		Total
Revenues		158,882		55,371		57,313		271,566
Cost of Revenues		97,310		40,998		35,329		173,637
Gross profit		61,572		14,373		21,984		97,929
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		1,676		34,988
General and administrative		11,221		4,940		7,457		23,618
Restructuring costs		219		96		-		315
Impairment of goodwill and intangible assets		-		31,879		-		31,879
Operating income (loss)		8,648		(43,611)		12,851		(22,112)
Financial expenses, net								(3,432)
Other income								2,729
Loss before taxes								(22,815)
Tax benefit								(1,893)
Net loss from continuing operations								(20,922)
Net loss from discontinued operations								(2,270)
Net loss								(23,192)
Depreciation and amortization expenses		4,960		9,723		3989		18,672

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,
	2014		2013		2012
South America and Central America	$	110,825	$	84,048	$	115,190
Asia and Asia Pacific		51,983		91,616		84,482
North America		41,951		26,155		39,087
Europe		16,393		23,096		23,906
Africa		13,981		9,951		8,901
	$	235,133	$	234,866	$	271,566

c.During 2014, the Group did not have any customer generating revenues exceeding 10% of the Group's total revenues.

Revenues from a major Commercial Division customer located in Australia accounted for 21% of total consolidated revenues for the year ended December31, 2013.

Revenues from two major customers located in Australia and in Latin America accounted for 17% (included in Commercial Division) and 13% (included in Services Division) of total consolidated revenues for the year ended December31, 2012, respectively.

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

	December 31,
	2014		2013
Israel	$	66,457	$	68,527
Latin America		11,932		4,276
United States		1,999		1,936
Europe		9,486		9,453
Other		1,019		1,177
	$	90,893	$	85,369