CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 13:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

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

The Company's business is managed and reported as three separate reportable segments, comprised of the Company's named Commercial, Mobility and Services division:

· Commercial division - provides advanced satellite networks, satellite communication systems, small cell solutions and associated professional services and comprehensive turnkey solutions. The Commercial division‘s customers are service providers, satellite operators, mobile network operators, telecommunication companies and large enterprises worldwide. The division is focused on high throughput satellites opportunities worldwide.

· Mobility division - provides airborne, maritime and ground-mobile satellite systems and solutions.  The division’s customers are, service providers, system integrators, defense and homeland security organizations, as well as other commercial entities worldwide. The division provides solutions on land, sea and air, while placing major focus on the high-growth market of commercial In-Flight Connectivity (“IFC”). In addition, the division includes the operations of Wavestream, whose sales are primarily to IFC integrators as well as defense integrators.

· Services division – provides managed network and services for rural broadband access through the Company’s subsidiaries in Peru and Colombia. The Company’s connectivity solutions have been implemented in large and national scale projects. The divisions terrestrial and satellite networks provide Internet and telephony services to thousands of rural communities and schools. The Company's turnkey solutions start with supplying network infrastructure, continue through ensuring high-quality, reliable connectivity and include full network support and maintenance, as well as support for applications that run on the installed network.

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.

2. Financial data relating to reportable operating segments:

	Year ended December 31, 2016
	Commercial			Mobility			Services		Total
Revenues	$	94,001		$	62,911		$	122,639	$	279,551
Cost of revenues		57,403			40,962			105,696		204,061
Gross profit		36,598			21,949			16,943		75,490
Research and development, net		12,599			12,254			-		24,853
Selling and marketing		17,153			5,483			775		23,411
General and administrative		10,657			9,138			6,676		26,471
Operating income (loss)		(3,811	)		(4,926	)		9,492		755
Financial expenses, net										(4,843	)
Loss before taxes										(4,088	)
Taxes on income										1,252
Loss										(5,340	)
Depreciation and amortization expenses	$	4,467		$	7,530		$	1,111	$	13,108

	Year ended December 31, 2015
	Commercial			Mobility			Services			Total
Revenues	$	100,935		$	41,112		$	55,496		$	197,543
Cost of revenues		63,425			30,715			49,178			143,318
Impairment of long-lived assets		-			-			10,137			10,137
Gross profit (loss)		37,510			10,397			(3,819	)		44,088
Research and development, net		14,175			8,237			-			22,412
Selling and marketing		16,839			6,947			1,037			24,823
General and administrative		6,622			6,271			5,751			18,644
Restructuring costs		1,078			421			9			1,508
Goodwill impairment		-			20,402			-			20,402
Operating loss		(1,204	)		(31,881	)		(10,616	)		(43,701	)
Financial expenses, net											(7,243	)
Loss before taxes											(50,944	)
Taxes on income											1,190
Loss from continuing operations											(52,134	)
Loss from discontinued operations											(200	)
Loss											(52,334	)
Depreciation and amortization expenses	$	4,546		$	7,322		$	3,204		$	15,072

	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
Research and development, net		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	)
Income before taxes									1,200
Taxes on income									1,901
Loss from continuing operations									(701	)
Loss from discontinued operations									(795	)
Loss									(1,496	)
Depreciation and amortization expenses	$	4,885	$	8,220		$	2,846	$	15,951

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,
	2016		2015		2014
Latin America	$	143,491	$	100,443	$	110,825
APAC		47,094		47,843		51,983
North America		54,728		28,242		41,951
EMEA		34,238		21,015		30,374
	$	279,551	$	197,543	$	235,133

c. Revenues from a major Services division customer located in Peru accounted for 34% and 11% of the total consolidated revenues for the years ended December 31, 2016 and 2015, respectively.

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

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

Property and Equipment, net:

	December 31,
	2016		2015
Israel	$	62,648	$	64,628
Latin America		5,740		4,524
United States		1,705		1,721
Europe		9,641		9,987
Other		1,103		1,103
	$	80,837	$	81,963