Segment Information and Major Customers

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information and Major Customers

Note 16 – Segment Information and Major Customers

The Chief Operating Decision Maker regularly reviews the Company’s financial performance based on two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes a portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services.

The performance of each segment is evaluated based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain (loss), other income (expense) and income tax (expense) benefit are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2021, 2020 and 2019:

	2021				2020				2019
(In thousands)	Revenue		Gross Profit		Revenue		Gross Profit		Revenue		Gross Profit
Network Solutions	$	498,834	$	190,993	$	438,015	$	193,789	$	455,226	$	191,549
Services & Support		64,170		27,384		68,495		23,762		74,835		27,618
Total	$	563,004	$	218,377	$	506,510	$	217,551	$	530,061	$	219,167

For the years ended December 31, 2021, 2020 and 2019, $1.2 million, $1.4 million and $1.7 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the years ended December 31, 2021, 2020 and 2019, $14 thousand, $32 thousand and $29 thousand, respectively, of depreciation expense was included in gross profit for our Services & Support segment.

Revenue by Category

In addition to our reportable segments, revenue is also reported for the following three categories – (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products.

The following tables disaggregate our revenue by category for the years ended December 31, 2021, 2020 and 2019:

	2021
(In thousands)	Network Solutions		Services & Support		Total
Access & Aggregation	$	300,343	$	43,853	$	344,196
Subscriber Solutions & Experience		189,121		10,500		199,621
Traditional & Other Products		9,370		9,817		19,187
Total	$	498,834	$	64,170	$	563,004

	2020
(In thousands)	Network Solutions		Services & Support		Total
Access & Aggregation	$	262,578	$	50,560	$	313,138
Subscriber Solutions & Experience		161,824		9,263		171,087
Traditional & Other Products		13,613		8,672		22,285
Total	$	438,015	$	68,495	$	506,510

	2019
(In thousands)	Network Solutions		Services & Support		Total
Access & Aggregation	$	289,980	$	58,894	$	348,874
Subscriber Solutions & Experience		144,651		8,269		152,920
Traditional & Other Products		20,595		7,672		28,267
Total	$	455,226	$	74,835	$	530,061

Additional Information

The following table presents revenue information by geographic area for the years ended December 31, 2021, 2020 and 2019:

(In thousands)	2021		2020		2019
United States	$	374,600	$	352,079	$	300,853
Germany		65,229		74,882		78,062
United Kingdom		56,355		13,799		2,569
Mexico		4,616		4,087		90,795
Other international		62,204		61,663		57,782
Total	$	563,004	$	506,510	$	530,061

Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of revenue in 2021 included one customer, at 18%, which was a distributor and was included in both our Network Solutions and Services & Support segments. Single customers comprising more than 10% of revenue in 2020 included three customers at 15%, 12% and 10% and was included in both our Network Solutions and Services & Support segments. Single customers comprising more than 10% of revenue in 2019 included three customers at 19%, 17% and 13% and was included in both our Network Solutions and Services & Support segments. Other than those with more than 10% of revenue disclosed above our next five largest customers can change, and have historically changed, from year-to-year. The next five largest customers combined represented 38%, 34% and 28% of total revenue in 2021, 2020 and 2019, respectively.

As of December 31, 2021, property, plant and equipment, net totaled $55.8 million, which included $53.0 million held in the U.S. and $2.8 million held outside the U.S. As of December 31, 2020, property, plant and equipment, net totaled $62.4 million, which included $58.4 million held in the U.S. and $4.0 million held outside the U.S. Property, plant and equipment, net is reported on a Company-wide, functional basis only.