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Segment and Geographical Information
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment and Geographical Information
Segment and Geographical Information
The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The two operating segments, which are the same as the Company's two reportable segments, are as follows:
Automation and Analytics
The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Automation and Analytics products are designed to enable the Company's customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, the Company's systems can be tailored to specific customer needs. The financial results of InPharmics acquired in the second quarter of 2017 are included in the Automation and Analytics segment.
Medication Adherence
The Medication Adherence segment includes solutions to assist patients to remain adherent to their medication regimens. These solutions are comprised of a variety of tools and aids that may be directly used by a pharmacist or a healthcare provider in their direct care for a patient, or the patient themselves, and include software based systems and medication adherence packaging. Software solutions primarily operate on the Patient Management Access Portal (PMAP), a subscription based software system which provides an environment for patient engagement by clinicians. Services running on PMAP include Time My Meds® medication synchronization, immunization management, and a number of tools used by clinicians to manage patient engagement workflows. Medication Adherence packaging is designed either for patient use in care environments where there is a caregiver present or for environments where the patient cares for him or herself and includes the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services.
The following tables summarize the financial performance of the Company's reportable segments, including a reconciliation of income from segment operations to income from total operations:
 
Three months ended March 31,
 
2018
 
2017
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
(In thousands)
Revenues
$
151,406

 
$
31,213

 
$
182,619

 
$
122,170

 
$
26,383

 
$
148,553

Cost of revenues
78,242

 
21,922

 
100,164

 
68,761

 
17,601

 
86,362

Gross profit
73,164

 
9,291

 
82,455

 
53,409

 
8,782

 
62,191

Operating expenses
48,390

 
10,199

 
58,589

 
48,062

 
11,196

 
59,258

Income from operations
$
24,774

 
$
(908
)
 
$
23,866

 
$
5,347

 
$
(2,414
)
 
$
2,933

Corporate costs
 
 
 
 
23,233

 
 
 
 
 
19,485

Income from operations
 
 
 
 
$
633

 
 
 
 
 
$
(16,552
)
 
 
 
 
 
 
 
 
 
 
 
 

Significant customers
There were no customers that accounted for more than 10% of our total revenues for the three months ended March 31, 2018 and 2017. Also, there were no customers that accounted for more than 10% of our accounts receivable as of March 31, 2018 and December 31, 2017.
Geographical Information
Revenues
 
Three months ended March 31,
 
2018
 
2017
 
(In thousands)
United States
$
158,202

 
$
130,279

Rest of world (1)
24,417

 
18,274

Total revenues
$
182,619

 
$
148,553

 
 
 
 
_________________________________________________
(1)    No individual country represented more than 10% of the respective totals.
      Property and equipment, net
 
March 31,
2018
 
December 31,
2017
 
(In thousands)
United States
$
40,116

 
$
34,899

Rest of world (1)
8,174

 
7,696

Total property and equipment, net
$
48,290

 
$
42,595

_________________________________________________
(1)    No individual country represented more than 10% of the respective totals.
Property and equipment, net is attributed to the geographic location in which it is located.