XML 32 R27.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
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.

The Network Solutions segment includes hardware and software products that enable a digital future which support the Company's Subscriber, Access & Aggregation, and Optical Networking Solutions. The Company's cloud-managed Wi-Fi gateways, virtualization software, and switches provide a mix of wired and wireless connectivity at the customer premises. In addition, its Carrier Ethernet products support a variety of applications at the network edge ranging from mobile backhaul to connecting enterprise customers (“Subscriber Solutions"). The Company's portfolio includes products for multi-gigabit service delivery over fiber or alternative media to homes and businesses.

The Services & Support segment offers a comprehensive portfolio of network design, implementation, maintenance and cloud-hosted services supporting its Subscriber, Access & Aggregation, and Optical Networking Solutions. These services assist operators in the deployment of multi-vendor networks while reducing their cost to maintain these networks. The cloud-hosted services include a suite of SaaS applications under the Company's Mosaic One platform that manages end-to-end network and service optimization for both fiber access infrastructure and mesh Wi-Fi connectivity. The Company backs these services with a global support organization that offers on-site and off-site support services with varying SLAs.

The performance of these segments is evaluated based on revenue, gross profit and gross margin; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain, other income (expense), net and income tax benefit are reported on a consolidated 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 revenue and gross profit of the Company's reportable segments:

 

 

Three Months Ended

 

 

 

September 30, 2024

 

 

September 30, 2023

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

181,488

 

 

$

55,713

 

 

$

228,564

 

 

$

47,277

 

Services & Support

 

 

46,216

 

 

 

29,538

 

 

 

43,767

 

 

 

26,960

 

Total

 

$

227,704

 

 

$

85,251

 

 

$

272,331

 

 

$

74,237

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

September 30, 2023

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

541,955

 

 

$

156,472

 

 

$

793,984

 

 

$

176,607

 

Services & Support

 

 

137,913

 

 

 

82,609

 

 

 

129,637

 

 

 

77,991

 

Total

 

$

679,868

 

 

$

239,081

 

 

$

923,621

 

 

$

254,598

 

For each of the three months ended September 30, 2024 and 2023, $2.9 million and $1.5 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the nine months ended September 30, 2024 and 2023, $7.4 million and $4.5 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the three months ended September 30, 2024 and 2023, $0.1 million and $2 thousand, respectively, of depreciation expense was included in gross profit for our Services & Support segment. For the nine months ended September 30, 2024 and 2023, $0.2 million and $7 thousand, respectively, of depreciation expense was included in gross profit for our Services & Support segment.

Revenue by Geographic Area

The following table presents revenue information by geographic area:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

102,527

 

 

$

111,494

 

 

$

293,420

 

 

$

375,254

 

United Kingdom

 

 

49,366

 

 

 

60,347

 

 

 

145,666

 

 

 

212,171

 

Germany

 

 

27,270

 

 

 

41,242

 

 

 

91,553

 

 

 

150,710

 

Other international

 

 

48,541

 

 

 

59,248

 

 

 

149,229

 

 

 

185,486

 

Total

 

$

227,704

 

 

$

272,331

 

 

$

679,868

 

 

$

923,621