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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2014
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING

NOTE 14—SEGMENT REPORTING

 

The Company's 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 they receive 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, 2014, 2013 and 2012 based on the current reporting segment structure.

 

Years ended December 31,
Net Sales by Segment 2014   % of net
sales		     2013     % of net
sales		     2012     % of net
sales		  
(in thousands, except percentages)
Equipment $ 105,988       82 %   $ 141,138       86 %   $ 160,688       86 %
Services—Equipment Based Services     23,432       18 %     23,301       14 %     25,784       14 %
—Operational Support Services     —       0 %     —       0 %     256       0 %
Total Sales   $ 129,420       100 %   $ 164,439       100 %   $ 186,728       100 %

 

Years ended December 31,
Gross profit/(loss) by Segment 2014   Gross
profit
%		     2013     Gross
profit
%		     2012     Gross
profit
%		  
(in thousands, except percentages)
Equipment $ 21,000       20 %   $ 41,250       29 %   $ 64,835       40 %
Services—Equipment Based Services     1,128       5 %     (1,030 )     -4 %     3,546       14 %
—Operational Support Services     —       0 %     —       0 %     (223 )     -87 %
Total Gross profit   $ 22,128       17 %   $ 40,220       24 %   $ 68,158       37 %

 

Years ended December 31,
Segment Margin and Operating Loss 2014   2013     2012  
(in thousands)
Equipment $ 6,583     $ 24,047     $ 34,661  
Services—Equipment Based Services     1,105       (1,037 )     3,524  
—Operational Support Services     (22 )     (2,112 )     (7,420 )
Total segment margin     7,666       20,898       30,765  
General and Corporate     (21,739 )     (34,131 )     (60,308 )
Operating Income (Loss)   $ (14,073 )   $ (13,233 )   $ (29,543 )

 

General and corporate expenses include all un-allocated expenses such as sales and marketing, general and administration, common R&D expenses, and restructuring expenses.

 

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,
2014 % of net
sales		     2013     % of net
sales		     2012     % of net
sales		  
(in thousands, except percentages)
Net Sales by Region                                        
China   $ 15,465       12 %   $ 6,945       4 %   $ 38,544       21 %
Japan     58,999       46 %     93,203       57 %     99,367       53 %
India     37,424       29 %     26,595       16 %     23,992       13 %
Taiwan     6,706       5 %     13,332       8 %     9,824       5 %
Other     10,826       8 %     24,364       15 %     15,001       8 %
Total   $ 129,420       100 %   $ 164,439       100 %   $ 186,728       100 %

 

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

 

December 31,
2014   2013   
(in thousands)
China $ 1,988     $ 3,795  
Other     1,049       976  
Total long-lived assets   $ 3,037     $ 4,771