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Segment Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Information

12. SEGMENT INFORMATION

We operate in two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes our suite of ProCloud® managed services, network installation, engineering and maintenance services, and fee-based technical support and equipment repair/replacement plans.

We evaluate the performance of our segments based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net realized investment gain/loss, other income/expense and provision for taxes are reported on a company-wide, functional basis only. There are no inter-segment revenues.


The following table presents information about the reported sales and gross profit of our reportable segments for the three months ended March 31, 2017 and 2016 . We do not produce asset information by reportable segment; therefore, it is not reported.

 

 

 

Three Months Ended

 

 

 

March 31, 2017

 

 

March 31, 2016

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

143,597

 

 

$

66,938

 

 

$

123,883

 

 

$

59,810

 

Services & Support

 

 

26,682

 

 

 

6,777

 

 

 

18,321

 

 

 

5,984

 

Total

 

$

170,279

 

 

$

73,715

 

 

$

142,204

 

 

$

65,794

 

 

Sales by Category

In addition to our reporting segments, we also report revenue for the following three categories – Access & Aggregation, Customer Devices, and Traditional & Other Products.

The table below presents sales information by category for the three months ended March 31, 2017 and 2016:

 

 

 

Three Months Ended

 

 

 

March 31,

 

(In thousands)

 

2017

 

 

2016

 

Access & Aggregation

 

$

120,143

 

 

$

93,855

 

Customer Devices

 

 

36,268

 

 

 

32,353

 

Traditional & Other Products

 

 

13,868

 

 

 

15,996

 

Total

 

$

170,279

 

 

$

142,204