XML 18 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.6

SEGMENT REPORTING | 12 Months Ended
--- | ---
Dec. 31, 2011
SEGMENT REPORTING |
SEGMENT REPORTING |
NOTE 18—SEGMENT REPORTING With the Company's strategic shifts, beginning on January 1, 2011, the Company realigned its reporting segments to better reflect its new operating structure. Effective January 1, 2011, the new reporting segments are as follows: • Equipment—Focused on the Company's equipment sales including network infrastructure and application products. Network infrastructure products mainly include broadband products. Network application products mainly include IPTV solutions and Wireless infrastructure technologies. • Services—Providing services and support of the Company's equipment products and also the new operational support segment. Equipment Based Services—Services and support the Company provides to customers after their purchases of equipment. Operational Support Services—Providing new services through long-term revenue sharing arrangements with the cable operators and the Internet TV platform established by its subsidiary, iTV. This platform will be accessible by potential customers through a new website which will eventually distribute content to audiences on a global basis with a high-quality user experience consisting of: • Integrated multi-screen viewing from a single managed platform • Time and location shifting • Reliable HD streaming • Multi-language programming • Value-added interactive service, such as distance-learning, gaming and e-commerce These revenues will be generated through advertising, subscription and software license fees. The Company's Chief Operating Decision Makers make financial decisions based on information it receives from its internal management system and currently evaluates the operating performance and allocates resources to the reporting segments based on segment revenue and gross profit. Cost of sales and direct expenses in relation to production are assigned to the reporting segments. The accounting policies used in measuring segment assets and operating performance are the same as those used at the consolidated level. Summarized below are the Company's segment net sales, gross profit and segment margin for the years ended December 31, 2011, 2010 and 2009 based on the current reporting segment structure. The Company has reclassified its previously reported segment information for the years ended December 31, 2010 and 2009 to conform to the current segment presentation.
|  | Years ended December 31, |
--- | --- | --- | ---
Net Sales by Segment |  | 2011 |  | % of net sales |  | 2010 |  | % of net sales |  | 2009 |  | % of net sales |
|  | (in thousands, except percentages) |
Equipment |  | $ | 285,493 |  |  | 89 | % | $ | 251,134 |  |  | 86 | % | $ | 323,387 |  |  | 84 | %
Services—Equipment Based Services |  |  | 34,539 |  |  | 11 | % |  | 40,401 |  |  | 14 | % |  | 62,957 |  |  | 16 | %
—Operational Support Services |  |  | 544 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 320,576 |  |  | 100 | % | $ | 291,535 |  |  | 100 | % | $ | 386,344 |  |  | 100 | %
|  | Years ended December 31, |
--- | --- | --- | ---
Gross profit by Segment |  | 2011 |  | Gross profit % |  | 2010 |  | Gross profit % |  | 2009 |  | Gross profit % |
|  | (in thousands, except percentages) |
Equipment |  | $ | 107,030 |  |  | 37 | % | $ | 57,567 |  |  | 23 | % | $ | 39,149 |  |  | 12 | %
Services—Equipment Based Services |  |  | 9,271 |  |  | 27 | % |  | 12,671 |  |  | 31 | % |  | 25,830 |  |  | 41 | %
—Operational Support Services |  |  | (1,967 | ) |  | (362 | )% |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 114,334 |  |  | 36 | % | $ | 70,238 |  |  | 24 | % | $ | 64,979 |  |  | 17 | %
|  | Years ended December 31, |
--- | --- | --- | ---
Segment Margin and Operating Income (Loss) |  | 2011 |  | 2010 |  | 2009 |
|  | (in thousands) |
Equipment |  | $ | 72,598 |  | $ | 15,850 |  | $ | (33,250 | )
Services—Equipment Based Services |  |  | 9,162 |  |  | 13,174 |  |  | 24,569 |
—Operational Support Services |  |  | (9,806 | ) |  | (206 | ) |  | — |
Total segment margin |  |  | 71,954 |  |  | 28,818 |  |  | (8,681 | )
General and Corporate |  |  | (50,705 | ) |  | (102,540 | ) |  | (210,007 | )
Operating Income (Loss) |  | $ | 21,249 |  | $ | (73,722 | ) | $ | (218,688 | )
General and corporate expenses include all un-allocated expenses such as sales and marketing, general and administration, common R&D expenses, equity award related charges and restructuring and impairment charges. Sales are attributed to a geographical area based upon the location of the customer. Sales data by geographical area are as follows:
|  | Years Ended December 31, |
--- | --- | --- | ---
|  | 2011 |  | % of net sales |  | 2010 |  | % of net sales |  | 2009 |  | % of net sales |
|  | (in thousands, except percentages) |
Net Sales by Region |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | — |  |  | — |  | $ | 5,903 |  |  | 2 | % | $ | 78,806 |  |  | 21 | %
China |  |  | 157,564 |  |  | 49 | % |  | 166,621 |  |  | 57 | % |  | 177,147 |  |  | 46 | %
Japan |  |  | 96,257 |  |  | 30 | % |  | 48,217 |  |  | 17 | % |  | 29,361 |  |  | 7 | %
India |  |  | 30,789 |  |  | 10 | % |  | 31,426 |  |  | 11 | % |  | 62,859 |  |  | 16 | %
Other |  |  | 35,966 |  |  | 11 | % |  | 39,368 |  |  | 13 | % |  | 38,171 |  |  | 10 | %
|  | $ | 320,576 |  |  | 100 | % | $ | 291,535 |  |  | 100 | % | $ | 386,344 |  |  | 100 | %
Long-lived assets, consisting of property, plant and equipment, by geographical area are as follows:
|  | December 31, 2011 |  | December 31, 2010 |
--- | --- | --- | --- | --- | ---
|  | (in thousands) |
United States |  | $ | 34 |  | $ | 38 |
China |  |  | 11,339 |  |  | 3,713 |
Other |  |  | 826 |  |  | 1,068 |
Total long-lived assets |  | $ | 12,199 |  | $ | 4,819 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration