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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2012
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—Focusing on the Company's equipment sales including network infrastructure and application products. Network infrastructure products mainly include broadband products. Network application products mainly include 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—Provides new services consisting of:

    •
    Integrated multi-screen viewing from a single managed platform

    •
    Time and location shifting

    •
    Reliable HD streaming

        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, 2012, 2011 and 2010 based on the current reporting segment structure. The Company has reclassified its previously reported segment information for the years ended December 31, 2010 to conform to the current segment presentation.

 
   Years ended December 31,  
Net Sales by Segment
  2012   % of net sales   2011   % of net sales   2010   % of net
sales		  
 
   (in thousands, except percentages)
  

Equipment

   $ 160,688     86 % $ 285,493     89 % $ 251,134     86 %

Services—Equipment Based Services

     25,784     14 %   34,539     11 %   40,401     14 %

              —Operational Support Services

     256     0 %   544     0 %   —     0 %
                           

Total Sales

   $ 186,728     100 % $ 320,576     100 % $ 291,535     100 %
                           


 

 
   Years ended December 31,  
Gross profit by Segment
  2012   Gross profit %   2011   Gross profit %   2010   Gross profit %  
 
   (in thousands, except percentages)
  

Equipment

   $ 64,835     40 % $ 107,030     37 % $ 57,567     23 %

Services—Equipment Based Services

     3,546     14 %   9,271     27 %   12,671     31 %

              —Operational Support Services

     (223 )   -87 %   (1,967 )   -362 %   —     0 %
                                 

Total Gross profit

   $ 68,158     37 % $ 114,334     36 % $ 70,238     24 %
                                 

 
   Years ended December 31,  
Segment Margin and Operating Loss
  2012   2011   2010  
 
   (in thousands)
  

Equipment

   $ 34,661   $ 72,598   $ 15,850  

Services—Equipment Based Services

     3,524     9,162     13,174  

              —Operational Support Services

     (7,420 )   (9,806 )   (206 )
               

Total segment margin

     30,765     71,954     28,818  
               

General and Corporate

     (63,351 )   (51,155 )   (102,540 )
               

Operating Income (Loss)

   $ (32,586 ) $ 20,799   $ (73,722 )
               

        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,  
 
   2012   % of net
sales		   2011   % of net
sales		   2010   % of net
sales		  
 
   (in thousands, except percentages)
  

Net Sales by Region

                                      

China

   $ 38,544     21 % $ 157,564     49 % $ 166,621     57 %

Japan

     99,367     53 %   96,257     30 %   48,217     17 %

India

     23,992     13 %   30,789     10 %   31,426     11 %

United States

     —     0 %   —     0 %   5,903     2 %

Other

     24,825     13 %   35,966     11 %   39,368     13 %
                           

Total

   $ 186,728     100 % $ 320,576     100 % $ 291,535     100 %
                           

        Long-lived assets, consisting of property, plant and equipment, by geographical area are as follows:

 
   December 31,  
 
   2012   2011  
 
   (in thousands)
  

United States

   $ —   $ 34  

China

     7,729     11,339  

Other

     1,137     826  
           

Total long-lived assets

   $ 8,866   $ 12,199