Note 13 - Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE M—SEGMENT INFORMATION

Description of segments:

The Company operates under three reportable segments.

The Company's segment information has been prepared in accordance with ASC 280, "Segment Reporting." Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the Company's chief operating decision-maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM is its Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income.

The Company's operating segments are as follows: Home, Office and Mobile. The classification of the Company’s business segments is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology.

A description of the types of products provided by each business segment is as follows:

Home - Wireless chipset solutions for converged communication at home. Such solutions include integrated circuits targeted for cordless phones sold in retail or supplied by telecommunication service providers, residential gateway devices supplied by telecommunication service providers which integrate the DECT/CAT-iq functionality and also address home automation applications, as well as fixed-mobile convergence solutions.

Office - Comprehensive solution for Voice-over-IP (VOIP) office products, including office solutions that offer businesses of all size low-cost VOIP terminals with converged voice and data applications.

Mobile - Products for the mobile market that provides voice enhancement and far-end noise elimination targeted for mobile phone and mobile headsets.

Segment data:

The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, equity-based compensation expenses, and certain corporate governance costs.

Selected operating results information for each business segment was as follows for the three months ended September 30, 2015 and 2014:

	Three months ended September 30,
	Revenues				Income (loss) from operations
	2015		2014		2015			2014
Home	$	28,882	$	32,292	$	5,480		$	5,957
Office		6,254		4,353		(1,646	)		(252	)
Mobile		83		70		(1,703	)		(2,910	)
Total	$	35,219	$	36,715	$	2,131		$	2,795

Selected operating results information for each business segment was as follows for the nine months ended September 30, 2015 and 2014:

	Nine months ended September 30,
	Revenues				Income (loss) from operations
	2015		2014		2015			2014
Home	$	95,288	$	95,492	$	19,768		$	16,851
Office	$	15,130	$	10,315	$	(3,361	)	$	(985	)
Mobile	$	83	$	70	$	(8,690	)	$	(8,865	)
Total	$	110,501	$	105,877	$	7,717		$	7,001

The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three and nine months periods ended September 30, 2015:

	Three months			Nine months
Income from operations	$	2,131		$	7,717
Unallocated corporate, general and administrative expenses		(486	)		(1,627	)
Equity-based compensation expenses		(1,261	)		(3,925	)
Intangible assets amortization expenses		(321	)		(963	)
Financial income, net		245			871
Total consolidated income before taxes	$	308		$	2,073

The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three and nine months ended September 30, 2014:

	Three months			Nine months
Income from operations	$	2,795		$	7,001
Unallocated corporate, general and administrative expenses		(526	)		(1,657	)
Equity-based compensation expenses		(1,296	)		(4,200	)
Intangible assets amortization expenses		(397	)		(1,191	)
Financial income, net		86			895
Total consolidated income before taxes	$	762		$	848