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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2013
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. The equipment Based Services are services and support the Company provides to customers after their purchases of equipment, and operational Support Services provide new services consisting of integrated multi-screen viewing from a single managed platform, time and location shifting, and 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, 2013, 2012 and 2011 based on the current reporting segment structure.
|  | Years ended December 31, |
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Net Sales by Segment |  | 2013 |  | % of net sales |  | 2012 |  | % of net sales |  | 2011 |  | % of net sales |
|  | (in thousands, except percentages) |
Equipment |  | $ | 141,138 |  |  | 86 | % | $ | 160,688 |  |  | 86 | % | $ | 285,493 |  |  | 89 | %
Services—Equipment Based Services |  |  | 23,301 |  |  | 14 | % |  | 25,784 |  |  | 14 | % |  | 34,539 |  |  | 11 | %
—Operational Support Services |  |  | — |  |  | 0 | % |  | 256 |  |  | 0 | % |  | 544 |  |  | 0 | %
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Total Sales |  | $ | 164,439 |  |  | 100 | % | $ | 186,728 |  |  | 100 | % | $ | 320,576 |  |  | 100 | %
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|  | Years ended December 31, |
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Gross profit/(loss) by Segment |  | 2013 |  | Gross profit % |  | 2012 |  | Gross profit % |  | 2011 |  | Gross profit % |
|  | (in thousands, except percentages) |
Equipment |  | $ | 41,250 |  |  | 29 | % | $ | 64,835 |  |  | 40 | % | $ | 107,030 |  |  | 37 | %
Services—Equipment Based Services |  |  | (1,030 | ) |  | -4 | % |  | 3,546 |  |  | 14 | % |  | 9,271 |  |  | 27 | %
—Operational Support Services |  |  | — |  |  | 0 | % |  | (223 | ) |  | -87 | % |  | (1,967 | ) |  | -362 | %
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Total Gross profit |  | $ | 40,220 |  |  | 24 | % | $ | 68,158 |  |  | 37 | % | $ | 114,334 |  |  | 36 | %
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|  | Years ended December 31, |
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Segment Margin and Operating Loss |  | 2013 |  | 2012 |  | 2011 |
|  | (in thousands) |
Equipment |  | $ | 24,047 |  | $ | 34,661 |  | $ | 72,598 |
Services—Equipment Based Services |  |  | (1,037 | ) |  | 3,524 |  |  | 9,162 |
—Operational Support Services |  |  | (2,112 | ) |  | (7,420 | ) |  | (9,806 | )
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Total segment margin |  |  | 20,898 |  |  | 30,765 |  |  | 71,954 |
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General and Corporate(1) |  |  | (34,131 | ) |  | (60,308 | ) |  | (50,679 | )
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Operating Income (Loss) |  | $ | (13,233 | ) | $ | (29,543 | ) | $ | 21,275 |
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(1) The Company reclassified the investment impairment charged to non-operating conforming to the current way in which management evaluates segment performance, and all the comparable periods re-classified accordingly. General and corporate expenses include all un-allocated expenses such as sales and marketing, general and administration, common R&D expenses, 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, |
--- | --- | --- | ---
|  | 2013 |  | % of net sales |  | 2012 |  | % of net sales |  | 2011 |  | % of net sales |
|  | (in thousands, except percentages) |
Net Sales by Region |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
China |  | $ | 6,945 |  |  | 4 | % | $ | 38,544 |  |  | 21 | % | $ | 157,564 |  |  | 49 | %
Japan |  |  | 93,203 |  |  | 57 | % |  | 99,367 |  |  | 53 | % |  | 96,257 |  |  | 30 | %
India |  |  | 26,595 |  |  | 16 | % |  | 23,992 |  |  | 13 | % |  | 30,789 |  |  | 10 | %
Taiwan |  |  | 13,332 |  |  | 8 | % |  | 9,824 |  |  | 5 | % |  | 7,055 |  |  | 2 | %
Other |  |  | 24,364 |  |  | 15 | % |  | 15,001 |  |  | 8 | % |  | 28,911 |  |  | 9 | %
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Total |  | $ | 164,439 |  |  | 100 | % | $ | 186,728 |  |  | 100 | % | $ | 320,576 |  |  | 100 | %
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Long-lived assets, consisting of property, plant and equipment, by geographical area are as follows:
|  | December 31, |
--- | --- | --- | ---
|  | 2013 |  | 2012 |
|  | (in thousands) |
China |  | $ | 3,795 |  | $ | 7,729 |
Other |  |  | 976 |  |  | 1,137 |
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Total long-lived assets |  | $ | 4,771 |  | $ | 8,866 |
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- 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 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: 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 3: 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 4: 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 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 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 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 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: 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 11: 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 Reference 12: 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 13: 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 14: 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 + Details
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