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Segment Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information

15. 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 (loss), 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 sales and gross profit of our reportable segments for the three and nine months ended September 30, 2019 and 2018. We do not produce asset information by reportable segment; therefore, it is not reported.

 

 

 

Three Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

94,018

 

 

$

37,574

 

 

$

121,043

 

 

$

51,100

 

Services & Support

 

 

20,074

 

 

 

8,757

 

 

 

19,292

 

 

 

7,348

 

Total

 

$

114,092

 

 

$

46,331

 

 

$

140,335

 

 

$

58,448

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

359,007

 

 

$

151,654

 

 

$

341,359

 

 

$

133,175

 

Services & Support

 

 

55,267

 

 

 

20,304

 

 

 

47,830

 

 

 

15,002

 

Total

 

$

414,274

 

 

$

171,958

 

 

$

389,189

 

 

$

148,177

 

 

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 nine months ended September 30, 2019 and 2018:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Access & Aggregation

 

$

65,114

 

 

$

91,901

 

 

$

274,313

 

 

$

258,323

 

Subscriber Solutions & Experience

 

 

42,476

 

 

 

38,552

 

 

 

119,731

 

 

 

103,213

 

Traditional & Other Products

 

 

6,502

 

 

 

9,882

 

 

 

20,230

 

 

 

27,653

 

Total

 

$

114,092

 

 

$

140,335

 

 

$

414,274

 

 

$

389,189

 

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

United States

 

$

83,144

 

 

$

83,730

 

 

$

230,960

 

 

$

214,039

 

International

 

 

30,948

 

 

 

56,605

 

 

 

183,314

 

 

 

175,150

 

Total

 

$

114,092

 

 

$

140,335

 

 

$

414,274

 

 

$

389,189