CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

NOTE 15:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION

The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker ("CODM"). The CODM is the Company’s Chief Executive Officer. The Company's CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.

 From 2018 until December 31, 2021, The Company had three operating segments: Fixed Networks, Mobility Solutions and Terrestrial Infrastructure Projects.

Commencing in the first quarter of 2022, to reflect the Company’s new management’s approach to the management of the Company’s operations, organizational alignment, customer base and end markets, the Company operates in three operating segments, as follows:
 

Satellite Networks is focused on developing and supplying networks that are used as the platform that enables the latest satellite constellations of high throughput satellites (“HTS”), very high throughput satellites (“VHTS”) and Non-GEO-Stationary Orbit (“NGSO”) opportunities worldwide. The segment provides advanced broadband satellite communication networks and associated professional services and comprehensive turnkey solutions and managed satellite network services solutions. Segment’s customers are service providers, satellite operators, MNOs, Telcos, large enterprises, system integrators, defense, homeland security organizations and governments worldwide. Principal applications include In-Flight-Connectivity, cellular backhaul, maritime, social inclusion solutions, government, defense and enterprise networks and are driving meaningful partnerships with satellite operators to leverage the segment’s technology and breadth of services to deploy and operate the ground-based satellite communication networks. The segment’s product portfolio includes a leading satellite network platform with high-speed VSATs, high performance on-the-move antennas, BUCs and transceivers.

Integrated Solutions is focused on developing, manufacturing and supplying products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems and solutions, including airborne, ground-mobile satellite systems and solutions. The integrated solutions product portfolio comprises of leading high-efficiency, high-power SSPAs, BUCs and transceivers with a field-proven, high-performance variety of frequency bands. The segment’s customers are satellite operators, In-Flight Connectivity service providers, defense and homeland security system integrators, and NGSO gateway integrators.

Network Infrastructure and Services is focused on telecom operation and implementation of large-scale network projects in Peru. The segment provides terrestrial (fiber optic and wireless network) and satellite network construction and operation. The segment serves the Company’s customers through technology integration, managed networks and services, connectivity services, internet access and telephony over the segment’s networks. The segment implements projects using various technologies (including the Company’s equipment), mainly based on BOT and BOO contracts.

The Company evaluated whether the change in its operating segments, as described above, affects goodwill assignment to reporting units and concluded no re-assignment is needed. 

a.Information on the reportable operating segments:

1.All the above segments changes were reflected through retroactive revision of prior period segment information.

2.The measurement of operating profit (loss) in the reportable operating segments is based on the same accounting principles applied in these consolidated financial statements and includes certain corporate overhead allocations.

3.Financial information relating to reportable operating segments:

	Year ended December 31, 2022
	Satellite Networks		Integrated Solutions		Network Infrastructure and Services		Unallocated			Total
Revenues	$	120,381	$	61,376	$	58,083	$	-		$	239,840
Cost of revenues		63,463		43,742		45,727		-			152,932
Gross profit		56,918		17,634		12,356		-			86,908
Research and development, net		26,045		9,595		-		-			35,640
Selling and marketing		18,043		2,068		1,583		-			21,694
General and administrative		7,506		5,212		6,132		-			18,850
Impairment of held for sale asset		-		-		-		771			771
Operating income (loss)		5,324		759		4,641		(771	)		9,953
Financial expenses, net											2,818
Income before taxes on income											7,135
Depreciation and amortization	$	5,009	$	3,093	$	3,506	$	-		$	11,608

	Year ended December 31, 2021
	Satellite Networks		Integrated Solutions		Network Infrastructure and Services			Unallocated			Total
Revenues	$	115,408	$	50,054	$	49,508		$	-		$	214,970
Cost of revenues		64,608		33,429		45,666			-			143,703
Gross profit		50,800		16,625		3,842			-			71,267
Research and development, net		22,210		9,126		-			-			31,336
Selling and marketing		18,434		2,153		925			-			21,512
General and administrative		6,019		4,199		5,369			-			15,587
Impairment of held for sale asset		-		-		-			651			651
Operating income (loss)		4,137		1,147		(2,452	)		(651	)		2,181
Financial expenses, net												1,722
Income before taxes on income												459
Depreciation and amortization	$	7,083	$	2,649	$	1,259		$	-		$	10,991

	Year ended December 31, 2020
	Satellite Networks			Integrated Solutions			Network Infrastructure and Services				Unallocated		Total
Revenues	$	82,050		$	39,120		$	44,965		$	-		$	166,135
Cost of revenues		49,770			30,259			44,726			-			124,755
Gross profit		32,280			8,861			239			-			41,380
Research and development, net		17,995			8,308			-			-			26,303
Selling and marketing		14,448			1,293			1,130			-			16,871
General and administrative		7,190			2,568			4,305			-			14,063
Merger, acquisition and related litigation expenses (income), net		-			-			-			(53,633	)		(53,633	)
Operating income (loss)		(7,353	)		(3,308	)		(5,196	)		53,633			37,776
Financial expenses, net														1,907
Income before taxes on income													$	35,869
Depreciation and amortization	$	7,123		$	1,995		$	1,173		$	-		$	10,291

b.Geographic information:

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,
	2022		2021		2020
United States	$	96,954	$	72,149	$	60,151
Peru		58,251		49,511		44,965
Israel		2,570		5,923		3,669
Others		82,065		87,387		57,350
	$	239,840	$	214,970	$	166,135

*) Reclassified.

c.The Company's long-lived assets (property and equipment, net and operating lease right-of-use assets) are located as follows(*):

	December 31,
	2022		2021
Israel	$	59,054	$	58,436
United States		10,202		8,448
Peru		6,025		5,160
Other		5,188		4,825
	$	80,469	$	76,869

*) Reclassified.

d.The table below represents the revenues from major customers and their segments:

	Year ended December 31,
	2022			2021			2020
Customer A – Network Infrastructure and Services		21	%		19	%		20	%
Customer B – Integrated Solutions		13	%		12	%		*	)
Customer C – Integrated Solutions		*	)		*	)		11	%

*)Less than 10%

Customer A is located in Peru, Customers B and C are located in the United States.