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Segment Reporting
3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The financial results of each segment are based on revenues from external customers, cost of revenue and operating expenses that are directly attributable to the segment and an allocation of costs from shared functions. These shared functions include, but are not limited to, facilities, human resources, information technology, and engineering. Allocations are made based on management’s judgment of the most relevant factors, such as head count, number of customer sites or other operational data that contribute to the shared costs. Certain corporate-level costs have not been allocated as they are not directly attributable to either segment. These costs primarily consist of broad corporate functions, including executive, legal, finance, and costs associated with corporate actions. Segment-level asset information has not been provided as such information is not reviewed by the chief operating decision-maker for purposes of assessing segment performance and allocating resources. There are no inter-segment sales or transactions.

The Company's performance is impacted by the levels of activity in the marine and land mobile markets and defense sectors, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers.

The mobile connectivity segment primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales within the mobile connectivity segment accounted for 16% and 18% of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020, respectively. Service sales of mini-VSAT Broadband airtime service accounted for 51% and 53% of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020, respectively.
The inertial navigation segment manufactures and distributes a portfolio of digital compass and FOG-based systems that address the rigorous requirements of military and commercial customers and provide reliable, easy-to-use and continuously available navigation and pointing data. The principal product categories in this segment include the FOG-based inertial measurement units (IMUs) for precision guidance, FOGs for tactical navigation (TACNAV) as well as pointing and stabilization systems, and digital compasses that provide accurate heading information for demanding applications, security, automation and access control equipment and systems. Sales of FOG-based guidance and navigation systems within the inertial navigation segment accounted for 14% of the Company's consolidated net sales for both the three months ended March 31, 2021 and 2020. TACNAV product sales accounted for 12% and 3% of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020, respectively.

No other single product class accounts for 10% or more of the Company's consolidated net sales.

The Company operates in a number of major geographic areas across the globe. The Company generates international net sales, based upon customer location, primarily from customers located in Singapore, Canada, Europe, countries in Africa, other Asia/Pacific countries, the Middle East, and India. Revenues are based upon customer location and internationally represented 62% and 58% of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020, respectively. Sales to Singapore customers represented 10% and 11% of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020, respectively. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended March 31, 2021 and 2020.

As of March 31, 2021 and December 31, 2020, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets.

Net sales and operating income (loss) for the Company's reporting segments and the Company's loss before income tax (benefit) expense for the three months ended March 31, 2021 and 2020 were as follows:

Three Months Ended
March 31,
20212020
Net sales:
Mobile connectivity$30,507 $28,896 
Inertial navigation11,785 7,672 
     Consolidated net sales$42,292 $36,568 
Operating (loss) income:
Mobile connectivity$(397)$(2,299)
Inertial navigation2,090 (821)
     Subtotal1,693 (3,120)
Unallocated, net(5,300)(4,528)
     Loss from operations(3,607)(7,648)
Net interest and other (expense) income(574)1,811 
     Loss before income tax (benefit) expense $(4,181)$(5,837)
Depreciation expense and amortization expense for the Company's reporting segments for the three months ended March 31, 2021 and 2020 were as follows:

Three Months Ended
March 31,
20212020
Depreciation expense:
Mobile connectivity$2,521 $1,958 
Inertial navigation384 293 
Unallocated169 151 
     Total consolidated depreciation expense$3,074 $2,402 
Amortization expense:
Mobile connectivity$276 $248 
Inertial navigation— — 
Unallocated— — 
     Total consolidated amortization expense$276 $248