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Segment Information and Major Customers
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information and Major Customers

Note 16 – Segment Information and Major Customers

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 each segment 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 table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

 

2019

 

 

2018

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

438,015

 

 

$

193,789

 

 

$

455,226

 

 

$

191,549

 

 

$

458,232

 

 

$

179,303

 

Services & Support

 

 

68,495

 

 

 

23,762

 

 

 

74,835

 

 

 

27,618

 

 

 

71,045

 

 

 

24,262

 

Total

 

$

506,510

 

 

$

217,551

 

 

$

530,061

 

 

$

219,167

 

 

$

529,277

 

 

$

203,565

 

 

Revenue by Category

In addition to our reportable segments, revenue is also reported for the following three categories – (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products.

The following tables disaggregate our revenue by category for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

 

 

2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

 

 

2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

 

Additional Information

The following table presents revenue information by geographic area for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

352,079

 

 

$

300,853

 

 

$

288,843

 

Germany

 

 

74,882

 

 

 

78,062

 

 

 

167,251

 

Mexico

 

 

4,087

 

 

 

90,795

 

 

 

12,186

 

Other international

 

 

75,462

 

 

 

60,351

 

 

 

60,997

 

Total

 

$

506,510

 

 

$

530,061

 

 

$

529,277

 

 

Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of revenue in 2020 included three customers, at 15%, 12% and 10%, of which one was a distributor. Single customers comprising more than 10% of revenue in 2019 included three customers at 19%, 17% and 13%. Single customers comprising more than 10% of revenue in 2018 included two customers at 27% and 17%. Other than those with more than 10% of revenues disclosed above, and excluding distributors, our next five largest customers can change, and have historically changed, from year-to-year. The next five largest customers combined represented 19%, 15% and 18% of total revenue in 2020, 2019 and 2018, respectively.

As of December 31, 2020, property, plant and equipment, net totaled $62.4 million, which included $58.4 million held in the U.S. and $4.0 million held outside the U.S. As of December 31, 2019, property, plant and equipment, net totaled $68.1 million, which included $64.2 million held in the U.S. and $3.9 million held outside the U.S. Property, plant and equipment, net is reported on a Company-wide, functional basis only.