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Segment Information and Major Customers
12 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
SEGMENT INFORMATION AND MAJOR CUSTOMERS
SEGMENT INFORMATION AND MAJOR CUSTOMERS
We operate under a single operating and reporting segment.  Our revenue consists of hardware product revenue and service revenue. In an effort to provide further transparency of our financial information, we have expanded our hardware product categories for revenue reporting. Beginning with the first quarter of fiscal 2016, we will transition away from reporting revenue in terms of growth and mature hardware products and will report four product categories: Cellular routers and gateways, Radio Frequency (RF), Embedded and Network. We believe this is a more meaningful presentation and reflects how we are monitoring our revenue.
Our cellular product category includes cellular routers and all gateways, and the RF product category includes XBee® modules as well as other RF solutions. The embedded product category includes Digi Connect® and Rabbit® embedded systems on module and single board computers. The network product category, which has the highest concentration of mature products, includes console and serial servers and USB connected devices.
Our service offerings include wireless product design and development services, CRM consulting services, application development services, our PaaS recurring revenue generated from Device Cloud platform, post-contract customer support and fees associated with enterprise support services.
The following table presents our revenue by our new product categories (in thousands):
 
Fiscal years ended September 30,
 
2015
 
2014
 
2013
Cellular routers and gateways
$
58,666

 
$
39,215

 
$
33,227

RF
34,373

 
29,094

 
29,157

Embedded
51,063

 
49,681

 
57,597

Network
51,395

 
54,856

 
53,097

Total product revenue
195,497

 
172,846

 
173,078

Service
17,361

 
19,855

 
22,303

Total revenue
$
212,858

 
$
192,701

 
$
195,381


The following table presents revenue for our growth and mature categories (in thousands):
 
Fiscal years ended September 30,
 
2014
 
2013
 
2012
Growth hardware products and all services
$
133,572

 
$
109,763

 
$
110,350

Mature hardware products
79,286

 
82,938

 
85,031

Total revenue
$
212,858

 
$
192,701

 
$
195,381


The information in the following table provides revenue by the geographic location of the customer for the fiscal years ended September 30, 2015, 2014 and 2013 (in thousands):
 
Fiscal years ended September 30,
 
2015
 
2014
 
2013
North America, primarily United States
$
136,603

 
$
116,421

 
$
116,541

Europe, Middle East & Africa
47,523

 
47,729

 
48,815

Asia
22,907

 
22,762

 
24,507

Latin America
5,825

 
5,789

 
5,518

Total revenue
$
212,858

 
$
192,701

 
$
195,381


4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)
Net property, equipment and improvements by geographic location are as follows (in thousands):
 
Fiscal years ended September 30,
 
2015
 
2014
 
2013
United States
$
14,103

 
$
12,813

 
$
13,321

International, primarily Europe
254

 
418

 
589

Total net property, equipment and improvements
$
14,357

 
$
13,231

 
$
13,910


Our U.S. export sales comprised 37.7% , 41.2% and 41.7% of revenue for the fiscal years ended September 30, 2015, 2014 and 2013. No single customer exceeded 10% of revenue for any of the periods presented. At September 30, 2015, we had two customers, whose accounts receivable balance comprised 10.2% and 11.0% of total accounts receivable. No single customer exceeded 10% of total accounts receivable at September 30, 2014.