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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

16. SEGMENT INFORMATION

The chief operating decision maker regularly reviews the Company’s financial performance based on 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 a portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services.

The performance of our segments is evaluated 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 income tax (expense) benefit are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

The following tables present information about the sales and gross profit of our reportable segments for the three and nine months ended September 30, 2020 and 2019.

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

115,229

 

 

$

52,434

 

 

$

94,018

 

 

$

37,574

 

Services & Support

 

 

17,914

 

 

 

6,528

 

 

 

20,074

 

 

 

8,757

 

Total

 

$

133,143

 

 

$

58,962

 

 

$

114,092

 

 

$

46,331

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

323,924

 

 

$

145,432

 

 

$

359,007

 

 

$

151,654

 

Services & Support

 

 

52,457

 

 

 

18,602

 

 

 

55,267

 

 

 

20,304

 

Total

 

$

376,381

 

 

$

164,034

 

 

$

414,274

 

 

$

171,958

 

 

Sales by Category

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.

The table below presents sales information by category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Access & Aggregation

 

$

85,423

 

 

$

65,114

 

 

$

234,165

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

43,125

 

 

 

42,476

 

 

 

125,697

 

 

 

119,731

 

Traditional & Other Products

 

 

4,595

 

 

 

6,502

 

 

 

16,519

 

 

 

20,230

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 

 

Sales by Geographic Area

 

The following table presents sales information by geographic area for the three and nine months ended September 30, 2020 and 2019: 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

United States

 

$

92,838

 

 

$

83,144

 

 

$

256,287

 

 

$

230,960

 

International

 

 

40,305

 

 

 

30,948

 

 

 

120,094

 

 

 

183,314

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274