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Segment Information
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information

14. SEGMENT INFORMATION

We operate in two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware products and software defined 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 investment gain, other income (expense) and (provision) benefit for income taxes are reported on a company-wide, functional basis only. There is no inter-segment revenue.

The following table presents information about the reported sales and gross profit of our reportable segments for the three and six months ended June 30, 2019 and 2018. We do not produce asset information by reportable segment; therefore, it is not reported.

 

 

 

Three Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

139,167

 

 

$

58,992

 

 

$

115,063

 

 

$

45,434

 

Services & Support

 

 

17,224

 

 

 

6,023

 

 

 

12,985

 

 

 

4,562

 

Total

 

$

156,391

 

 

$

65,015

 

 

$

128,048

 

 

$

49,996

 

 

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

264,989

 

 

$

114,080

 

 

$

220,316

 

 

$

82,075

 

Services & Support

 

 

35,193

 

 

 

11,547

 

 

 

28,538

 

 

 

7,654

 

Total

 

$

300,182

 

 

$

125,627

 

 

$

248,854

 

 

$

89,729

 

 

Sales by Category

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

The table below presents sales information by category for the three and six months ended June 30, 2019 and 2018:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Access & Aggregation

 

$

109,421

 

 

$

84,742

 

 

$

209,199

 

 

$

166,422

 

Subscriber Solutions & Experience

 

 

40,502

 

 

 

34,560

 

 

 

77,255

 

 

 

64,661

 

Traditional & Other Products

 

 

6,468

 

 

 

8,746

 

 

 

13,728

 

 

 

17,771

 

Total

 

$

156,391

 

 

$

128,048

 

 

$

300,182

 

 

$

248,854

 

 

The following table represents sales information by geographic area for the three and six months ended June 30, 2019 and 2018: 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

United States

 

$

75,288

 

 

$

68,222

 

 

$

147,816

 

 

$

130,308

 

International

 

 

81,103

 

 

 

59,826

 

 

 

152,366

 

 

 

118,546

 

Total

 

$

156,391

 

 

$

128,048

 

 

$

300,182

 

 

$

248,854