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Segment Information And Concentrations Of Risk
 12 Months Ended
Dec. 31, 2011
Segment Information And Concentrations Of Risk [Abstract]  
Segment Information And Concentrations Of Risk
12. Segment Information and Concentrations of Risk

Segment Information

The Company operates in the wireless broadband technology industry and senior management makes decisions about allocating resources based on the following reportable segments:

Mobile Computing Products segment—includes our MiFi products, USB and PC-card modems and Embedded Modules that enable data transmission and services via cellular wireless networks. All products within the segment represent a single product family.

M2M Products and Solutions segment—includes our intelligent asset-management solutions utilizing wireless technology and M2M communications acquired with our acquisition of Enfora (Note 2).

Segment net revenues and segment operating income (loss) represent the primary financial measures used by senior management to assess performance and include the net revenues, cost of net revenues, and operating expenses for which management is held accountable. Segment operating expenses include sales and marketing, research and development, general and administration, and amortization expenses that are directly related to individual segments. Segment earnings (loss) also may include acquisition-related costs, purchase price amortization, restructuring and integration costs.

 

The table below presents net revenues and operating income (loss) for our reportable segments (in thousands):

 

     Year Ended December 31,  
     2011     2010     2009  

Net revenues from reportable segment:

       

Mobile Computing Products

    $ 358,106      $ 332,464      $ 337,422   

M2M Products and Solutions

      44,756        6,478        —     
  

 

 

    

 

 

    

 

 

  

Total

    $ 402,862      $ 338,942      $ 337,422   
  

 

 

    

 

 

    

 

 

  

Operating income (loss):

       

Mobile Computing Products

    $ (13,764 )    $ (23,027 )    $ 2,750   

M2M Products and Solutions

      (19,963 )      (1,975 )      —     
  

 

 

    

 

 

    

 

 

  

Total

    $ (33,727 )    $ (25,002 )    $ 2,750   
  

 

 

    

 

 

    

 

 

  

 

     December 31,  
     2011      2010  

Identifiable assets by reportable segment:

      

Mobile Computing Products

    $ 181,180       $ 217,445   

M2M Products and Solutions

      67,999         84,663   
  

 

 

     

 

 

  

Total

    $ 249,179       $ 302,108   
  

 

 

     

 

 

  

The Company has operations in the United States, Canada, Europe and Asia. The following table details the geographic concentration of the Company's assets in the United States, Canada, Europe and Asia (in thousands):

 

     Year Ended December 31,  
     2011      2010  

United States

    $ 243,030       $ 293,227   

Canada

      4,764         8,059   

Europe

      280         318   

Asia

      1,105         504   
  

 

 

     

 

 

  
   $ 249,179       $ 302,108   
  

 

 

     

 

 

  

The following table details the Company's concentration of net revenues by geographic region based on shipping destination:

 

     Year Ended December 31,  
     2011     2010     2009  

North America

      93.5 %      95.0 %      93.0 % 

Europe

      4.0        4.7        6.6   

Asia

     2.5        0.3        0.4   
  

 

 

    

 

 

    

 

 

  
     100.0 %      100.0 %      100.0 % 
  

 

 

    

 

 

    

 

 

  

 

Concentrations of Risk

Substantially all of the Company's net revenues are derived from sales of wireless access products. Any significant decline in market acceptance of the Company's products or in the financial condition of the Company's customers would have an adverse effect on the Company's results of operations and financial condition.

A significant portion of the Company's net revenues come from a small number of customers. Two customers accounted for 50.8% and 13.1% of 2011 net revenues. Two customers accounted for 55.7% and 17.1% of 2010 net revenues. Three customers accounted for 38.1%, 20.5% and 10.7% of 2009 net revenues. All significant customers are included in the Company's Mobile Computing Products segment.

A significant portion of the Company's accounts receivables comes from a small number of customers. At December 31, 2011, the Company had two customers who accounted for 46.5% and 19.8% of total accounts receivable. At December 31, 2010, the Company had two customers who accounted for 35.04% and 30.9% of total accounts receivable.

The Company outsources its manufacturing to four third-party manufacturers. If they were to experience delays, disruptions, capacity constraints or quality control problems in its manufacturing operations, product shipments to the Company's customers could be delayed or its customers could consequently elect to cancel the underlying order, which would negatively impact the Company's net revenues and results of operations.