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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 14—SEGMENT REPORTING

 

The Company’s reporting segments are as follows:

 

  l 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.

  

  l 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, 2015, 2014 and 2013 based on the current reporting segment structure.

 

    Years ended December 31,  
Net Sales by Segment   2015     % of net
sales		     2014     % of net
sales		     2013     % of net
sales		  
    (in thousands, except percentages)  
Equipment   $ 87,361       75 %   $ 105,988       82 %   $ 141,138       86 %
Services—Equipment Based Services     29,742       25 %     23,432       18 %     23,301       14 %
—Operational Support Services     —       0 %     —       0 %     —       0 %
Total Sales   $ 117,103       100 %   $ 129,420       100 %   $ 164,439       100 %

 

    Years ended December 31,  
Gross profit/(loss) by Segment   2015     Gross
profit
%		     2014     Gross
profit
%		     2013     Gross
profit
%		  
    (in thousands, except percentages)  
Equipment   $ 21,470       25 %   $ 21,000       20 %   $ 41,250       29 %
Services—Equipment Based Services     6,398       22 %     1,128       5 %     (1,030 )     (4 )%
—Operational Support Services.     —       0 %     —       0 %     —       0 %
Total Gross profit   $ 27,868       24 %   $ 22,128       17 %   $ 40,220       24 %

 

    Years ended December 31,  
Segment Margin and Operating Loss   2015     2014     2013  
    (in thousands)  
Equipment   $ 12,097     $ 6,583     $ 24,047  
Services—Equipment Based Services     6,399       1,105       (1,037 )
—Operational Support Services     —       (22 )     (2,112 )
Total segment margin     18,496       7,666       20,898  
General and Corporate     (23,485 )     (21,739 )     (34,131 )
Operating Loss   $ (4,989 )   $ (14,073 )   $ (13,233 )

 

General and corporate expenses include all un-allocated expenses such as sales and marketing, general and administration and common R&D 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,  
    2015     % of net
sales		     2014     % of net
sales		     2013     % of net
sales		  
    (in thousands, except percentages)  
Net Sales by Region                                                
China   $ 9,490       8 %   $ 15,465       12 %   $ 6,945       4 %
Japan     57,483       49 %     58,999       46 %     93,203       57 %
India     34,836       30 %     37,424       29 %     26,595       16 %
Taiwan     7,904       7 %     6,706       5 %     13,332       8 %
Other     7,390       6 %     10,826       8 %     24,364       15 %
Total   $ 117,103       100 %   $ 129,420       100 %   $ 164,439       100 %

 

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

  

    December 31,  
    2015     2014  
    (in thousands)  
China   $ 1,100     $ 1,988  
Other     410       1,049  
Total long-lived assets   $ 1,510     $ 3,037