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Segment Information
6 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
We have two reportable operating segments for purposes of ASC 280-10-50 "Segment Reporting": (1) IoT Products & Services (formerly M2M), and (2) IoT Solutions (formerly Solutions). Our segments are described below:
IoT Products & Services
Our IoT Products & Services segment is composed of the following communications products and development services and includes our recent acquisition of Accelerated:
Cellular routers and gateways;
Radio frequency (RF) which include our XBee® modules as well as other RF solutions;
Embedded products include Digi Connect® and Rabbit® embedded systems on module and single board computers;
Network products, which has the highest concentration of mature products, including console and serial servers and USB connected products;
Digi Wireless Design Services;
Digi Remote Manager®; and
Support services which offers various levels of technical services for development assistance, consulting and training.
IoT Solutions
We have formed the IoT Solutions segment primarily through four acquisitions: the October 2015 acquisition of Bluenica, the November 2016 acquisition of FreshTemp, the January 2017 acquisition of SMART Temps and the October 2017 acquisition of TempAlert. Our IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. These products and services are provided to food service, transportation, education, healthcare and pharma, and industrial markets and are marketed as SmartSense by Digi™, formerly Digi Smart Solutions™.
We measure our segment results primarily by reference to revenue and operating income (loss). IoT Solutions revenue includes both product and service revenue. Certain costs incurred at the corporate level are allocated to our segments. These costs include information technology, employee benefits and shared facility services. The information technology and shared facility costs are allocated based on headcount and the employee benefits costs are allocated based on compensation costs.
9. SEGMENT INFORMATION (CONTINUED)
Summary operating results for each of our segments were as follows (in thousands):
 
 
Three months ended March 31,
 
Six months ended March 31,
 
 
2018
 
2017
 
2018
 
2017
Revenue
 
 
 
 
 
 
 
 
IoT Products & Services
 
$
49,825

 
$
43,873

 
$
90,705

 
$
88,809

IoT Solutions
 
4,966

 
1,742

 
9,283

 
1,981

Total revenue
 
$
54,791

 
$
45,615

 
$
99,988

 
$
90,790

Operating (loss) income
 
 
 
 
 
 
 
 
IoT Products & Services
 
$
4,689

 
$
2,710

 
$
5,953

 
$
5,797

IoT Solutions
 
(4,186
)
 
(1,198
)
 
(7,573
)
 
(1,863
)
Total operating (loss) income
 
$
503

 
$
1,512

 
$
(1,620
)
 
$
3,934

Depreciation and amortization
 
 
 
 
 
 
 
 
IoT Products & Services
 
$
1,729

 
$
953

 
$
2,578

 
$
1,800

IoT Solutions
 
1,559

 
436

 
3,115

 
590

Total depreciation and amortization
 
$
3,288

 
$
1,389

 
$
5,693

 
$
2,390


Total expended for property, plant and equipment was as follows (in thousand):
 
 
Six months ended March 31,
 
 
2018
 
2017
Expended for property, plant and equipment
 
 
 
 
IoT Products & Services
 
$
785

 
$
962

IoT Solutions
 

 
22

Total expended for property, plant and equipment
 
$
785

 
$
984


Total assets for each of our segments were as follows (in thousands):
 
 
March 31,
2018
 
September 30, 2017
Assets
 
 
 
 
IoT Products & Services
 
$
207,682

 
$
182,555

IoT Solutions
 
92,016

 
47,644

Unallocated*
 
59,638

 
114,990

Total assets
 
$
359,336

 
$
345,189

*Unallocated consists of cash and cash equivalents, current marketable securities and long-term marketable securities.
Total goodwill for each of our segments were as follows (in thousands):
 
 
March 31,
2018
 
September 30, 2017
Goodwill
 
 
 
 
IoT Products & Services
 
$
105,791

 
$
98,981

IoT Solutions
 
50,191

 
33,014

Total goodwill
 
$
155,982

 
$
131,995