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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2012
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract] |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION |
NOTE 15:- | CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
The Group applies ASC 280, "Segment Reporting" ("ASC 280"). Segments are managed separately and can be described as follows: Commencing 2012, in accordance with the Company's organizational changes instituted at the beginning of 2012, the Company's business is managed and reported as three separate reportable segments, comprised of the Company's newly named Commercial, Defense and Services divisions. Segment information for 2011 and 2010, was restated to conform to the new reporting segments:
| · | Commercial Division provides VSAT networks, satellite communication products and associated professional services to service providers and operators worldwide, including consumer Ka-band initiatives worldwide.
| · | Defense Division provides satellite communication products and solutions to defense and homeland security organizations worldwide and also includes Wavestream, which provides its products mainly to defense and homeland security organizations.
| · | Service division, which includes Spacenet, provides managed network services for business, government and residential customers in North America, as well as service businesses in Peru and Colombia, which offer rural telephony and Internet access solutions.
| a. | Information on the reportable segments:
| 1. | The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements.
| 2. | Financial data relating to reportable operating segments:
|  | Year ended December 31, 2012 |
|  | Commercial |  |  | Defense |  |  | Services |  |  | Total |
Revenues |  |  | 158,882 |  |  |  | 55,371 |  |  |  | 134,110 |  |  |  | 348,363 |
Cost of Revenues |  |  | 97,310 |  |  |  | 40,998 |  |  |  | 97,055 |  |  |  | 235,363 |
Gross profit |  |  | 61,572 |  |  |  | 14,373 |  |  |  | 37,055 |  |  |  | 113,000 |
R&D expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenses incurred |  |  | 19,561 |  |  |  | 12,735 |  |  |  | - |  |  |  | 32,296 |
Less - grants |  |  | 2,261 |  |  |  | 794 |  |  |  | - |  |  |  | 3,055 |
|  |  | 17,300 |  |  |  | 11,941 |  |  |  | - |  |  |  | 29,241 |
Selling and marketing |  |  | 24,184 |  |  |  | 9,128 |  |  |  | 9,319 |  |  |  | 42,631 |
General and administrative |  |  | 11,221 |  |  |  | 4,940 |  |  |  | 17,914 |  |  |  | 34,075 |
Impairment of goodwill and intangible assets and restructuring costs |  |  | 219 |  |  |  | 31,975 |  |  |  | - |  |  |  | 32,194 |
Operating income (loss) |  |  | 8,648 |  |  |  | (43,611 | ) |  |  | 9,822 |  |  |  | (25,141 | )
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,642 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,729 |
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (25,054 | )
Tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,862 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (23,192 | )
Depreciation and amortization expenses |  |  | 4,960 |  |  |  | 9,723 |  |  |  | 7,899 |  |  |  | 22,582 |
|  | Year ended December 31, 2011 |
|  | Commercial |  |  | Defense |  |  | Services |  |  | Total |
Revenues |  |  | 117,185 |  |  |  | 79,252 |  |  |  | 142,764 |  |  |  | 339,201 |
Cost of Revenues |  |  | 61,363 |  |  |  | 51,401 |  |  |  | 104,810 |  |  |  | 217,574 |
Gross profit |  |  | 55,822 |  |  |  | 27,851 |  |  |  | 37,954 |  |  |  | 121,627 |
R&D expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenses incurred |  |  | 19,210 |  |  |  | 15,866 |  |  |  | - |  |  |  | 35,076 |
Less - grants |  |  | 2,775 |  |  |  | 600 |  |  |  | - |  |  |  | 3,375 |
|  |  | 16,435 |  |  |  | 15,266 |  |  |  | - |  |  |  | 31,701 |
Selling and marketing |  |  | 22,262 |  |  |  | 10,973 |  |  |  | 13,288 |  |  |  | 46,523 |
General and administrative |  |  | 11,666 |  |  |  | 6,348 |  |  |  | 17,991 |  |  |  | 36,005 |
Costs related to acquisition transactions |  |  | 39 |  |  |  | - |  |  |  | 217 |  |  |  | 256 |
Impairment of goodwill and intangible assets and restructuring costs |  |  | 78 |  |  |  | 18,166 |  |  |  | 1,234 |  |  |  | 19,478 |
Operating income (loss) |  |  | 5,342 |  |  |  | (22,902 | ) |  |  | 5,224 |  |  |  | (12,336 | )
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,931 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,074 |
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,193 | )
Tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (343 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,850 | )
Depreciation and amortization expenses |  |  | 4,755 |  |  |  | 10,115 |  |  |  | 9,251 |  |  |  | 24,121 |
|  | Year ended December 31, 2010 |
|  | Commercial |  |  | Defense |  |  | Services |  |  | Total |
Revenues |  |  | 100,932 |  |  |  | 19,499 |  |  |  | 112,554 |  |  |  | 232,985 |
Cost of Revenues |  |  | 47,543 |  |  |  | 11,214 |  |  |  | 94,374 |  |  |  | 153,131 |
Gross profit |  |  | 53,389 |  |  |  | 8,285 |  |  |  | 18,180 |  |  |  | 79,854 |
R&D expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenses incurred |  |  | 17,981 |  |  |  | 4,213 |  |  |  | - |  |  |  | 22,194 |
Less - grants |  |  | 2,816 |  |  |  | 433 |  |  |  | - |  |  |  | 3,249 |
|  |  | 15,165 |  |  |  | 3,780 |  |  |  | - |  |  |  | 18,945 |
Selling and marketing |  |  | 19,554 |  |  |  | 2,695 |  |  |  | 11,147 |  |  |  | 33,396 |
General and administrative |  |  | 10,074 |  |  |  | 3,089 |  |  |  | 16,681 |  |  |  | 29,844 |
Costs related to acquisition transactions |  |  | - |  |  |  | 3,842 |  |  |  | - |  |  |  | 3,842 |
Operating income (loss) |  |  | 8,596 |  |  |  | (5,121 | ) |  |  | (9,648 | ) |  |  | (6,173 | )
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (557 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37,360 |
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,630 |
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,619 |
Depreciation and amortization expenses |  |  | 5,406 |  |  |  | 1,950 |  |  |  | 7,438 |  |  |  | 14,794 |
| b. | Revenues by geographic areas:
Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows:
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
North America |  | $ | 115,884 |  |  | $ | 156,326 |  |  | $ | 83,314 |
South America and Central America |  |  | 115,190 |  |  |  | 100,457 |  |  |  | 84,388 |
Asia and Asia Pacific |  |  | 84,482 |  |  |  | 51,554 |  |  |  | 36,350 |
Europe |  |  | 23,906 |  |  |  | 21,126 |  |  |  | 12,693 |
Africa |  |  | 8,901 |  |  |  | 9,738 |  |  |  | 16,240 |
|  | $ | 348,363 |  |  | $ | 339,201 |  |  | $ | 232,985 |
| c. | Net revenues from two major customers located in Australia and in Latin America accounted for 14% and 10% of total consolidated revenues for the year ended December 31, 2012, respectively.
During 2011 and 2010, the Group did not have any single customer or country generating revenues exceeding 10% of the Group's total revenues.
| d. | The Group's long-lived assets are located as follows:
|  | December 31, |
|  | 2012 |  |  | 2011 |
Israel |  | $ | 71,283 |  |  | $ | 73,760 |
Latin America |  |  | 4,174 |  |  |  | 4,867 |
United States |  |  | 9,693 |  |  |  | 12,490 |
Europe |  |  | 9,059 |  |  |  | 9,197 |
Other |  |  | 518 |  |  |  | 612 |
|  | $ | 94,727 |  |  | $ | 100,926

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