SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION

NOTE 19:- SEGMENT, CUSTOMER AND GEOGRAPHIC INFORMATION

a. General:

Commencing January 2008, the Company has two reportable segments that are related to continuing operations: the Cellocator segment and the Pointer segment.

The Cellocator segment designs, develops and produces leading mobile resource management products, including asset tracking, fleet management and security products for sale to third party operators providing mobile resource management services.

The Pointer segment acts as an operator by bundling the products of the Cellocator segment together with a range of services, including stolen vehicle retrieval services and fleet management services, and also provides road-side assistance services for sale to insurance companies, fleets and individual customers.

During 2008, as a result of the 2007 acquisition transaction in which the Company acquired Cellocator and following the determination of the CODM (chief operating decision maker), which is the Company's Chief Executive Officer, to control and manage the results of the Company's business by means of two segments, the Company began to produce discrete operating results of two business units, the Cellocator segment and the Pointer segment.

The Company evaluates performance and allocates resources based on operating profit or loss. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The Company applies ASC 280, Segment Reporting (formerly FAS 131, "Disclosures about Segments of an Enterprise and Related Information").

b. The following presents segment results of operations for the year ended December 31, 2012:

	Cellocator segment			Pointer segment		Total
Segments revenues	$	22,660		$	68,540	$	91,200
Intersegments revenues		(6,368	)		-		(6,368	)
Revenues from external customers	$	16,292		$	68,540	$	84,832
Segments operating profit	$	1,731		$	3,015	$	4,746
Segments assets	$	12,522		$	85,003	$	97,525
Depreciation, amortization and impairment expenses	$	561		$	4,985	$	5,546
Expenditures for assets	$	156		$	3,877	$	4,033

The Pointer segment revenues include revenue from services in the amount of $ 54,306.

The following reconciles segment operating profit and segments assets to net operating profit and assets as reported in the consolidated statements of income:

Segments operating income	$	4,746
Intercompany losses on intersegment sales		342
Operating income	$	5,088
Segments assets	$	97,525
Intercompany elimination		(1,240	)
Total assets	$	96,285

The following presents segment results of operations for the year ended December 31, 2011:

	Cellocator segment			Pointer segment		Total
Segments revenues	$	24,199		$	68,709	$	92,908
Intersegments revenues		(6,990	)		-		(6,990	)
Revenues from external customers	$	17,209		$	68,709	$	85,918
Segments operating profit (loss)	$	(5,366	)	$	2,512	$	(2,854	)
Segments assets	$	16,780		$	74,146	$	90,926
Depreciation, amortization and impairment expenses	$	8,224		$	4,486	$	12,710
Expenditures for assets	$	247		$	4,198	$	4,445

The Pointer segment revenues include revenue from services in the amount of $ 54,681.

The following reconciles segment operating profit and segments assets to net operating profit and assets as reported in the consolidated statements of income:

Segments operating income	$	(2,854	)
Intercompany losses on intersegment sales		241
Operating income	$	(2,613	)
Segments assets	$	90,926
Intercompany elimination		(1,588	)
Total assets	$	89,338

The following presents segment results of operations for the year ended December 31, 2010:

	Cellocator segment			Pointer segment		Total
Segments revenues	$	23,533		$	58,627	$	82,160
Intersegments revenues		(8,297	)		-		(8,297	)
Revenues from external customers	$	15,236		$	58,627	$	73,863
Segments operating profit	$	2,839		$	3,898	$	6,737
Segments assets	$	25,163		$	80,112	$	105,275
Depreciation and amortization expenses	$	1,360		$	4,208	$	5,568
Expenditures for assets	$	471		$	4,010	$	4,481

The Pointer segment revenues include revenue from services in the amount of $ 48,334.

The following reconciles segment operating profit and segments assets to net operating profit and assets as reported in the consolidated statements of income:

Segments operating income	$	6,737
Intercompany income on intersegment sales		(100	)
Operating income	$	6,637
Segments assets	$	105,275
Intercompany elimination		(1,845	)
Total assets	$	103,430

c. Summary information about geographical areas:

		Year ended December 31,
		2012		2011		2010
1.	Revenues *):
	Israel	$	60,423	$	61,498	$	53,574
	Latin America		12,611		12,856		11,483
	Europe		10,289		10,275		7,553
	Other		1,509		1,289		1,253
		$	84,832	$	85,918	$	73,863

*) Revenues are attributed to geographic areas based on the location of the end-customers.

		December 31,
		2012		2011		2010
2.	Long-lived assets:
	Israel	$	58,200	$	56,735	$	70,166
	Argentina		1,203		1,179		1,356
	Mexico		386		445		156
	Other		7		3		-
		$	59,796	$	58,362	$	71,678

d. In 2012, 2011 and 2010, none of our customer accounted above 10% of the Company's revenues.