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SEGMENT REPORTING
 12 Months Ended
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,  
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 %
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Sales

   $ 164,439     100 % $ 186,728     100 % $ 320,576     100 %
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           


 

 
   Years ended December 31,  
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 %
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Gross profit

   $ 40,220     24 % $ 68,158     37 % $ 114,334     36 %
                                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                 

 
   Years ended December 31,  
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 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total segment margin

     20,898     30,765     71,954  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

General and Corporate(1)

     (34,131 )   (60,308 )   (50,679 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Operating Income (Loss)

   $ (13,233 ) $ (29,543 ) $ 21,275  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(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 %
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 164,439     100 % $ 186,728     100 % $ 320,576     100 %
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        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  
           
​ ​ ​ ​ ​ ​ ​ ​

Total long-lived assets

   $ 4,771   $ 8,866  
           
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​ ​ ​ ​ ​ ​ ​ ​