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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2013
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION [Abstract]  
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
NOTE 14:-
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 named Commercial, Defense and Services Divisions:

 
·
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 comprised of 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, 2013
  
   
Commercial
    
Defense
    
Services
    
Total
  
                         
Revenues
     141,576       48,211       45,079       234,866  
Cost of Revenues
     94,966       33,773       26,471       155,210  
                                 
Gross profit
     46,610       14,438       18,608       79,656  
                                 
R&D expenses:
                                
Expenses incurred
     18,403       11,088       -       29,491  
Less - grants
     1,203       388       -       1,591  
                                 
      17,200       10,700       -       27,900  
                                 
Selling and marketing
     22,759       8,139       1,316       32,214  
General and administrative
     9,973       7,744       5,354       23,071  
Restructuring costs
     406       158       -       564  
                                 
Operating income (loss)
     (3,728 )     (12,303 )     11,938       (4,093 )
Financial expenses, net
                             (6,239 )
Other income
                             -  
Loss before taxes
                             (10,332 )
Tax benefit
                             (755 )
Net loss from continuing operations
                             (9,577 )
Net loss from discontinued operations
                             (8,320 )
Net loss
                             (17,897 )
                                 
Depreciation and amortization expenses
     4,996       8,469       4,094       17,559  

   
Year ended
December 31, 2012
  
   
Commercial
    
Defense
    
Services
    
Total
  
                         
Revenues
     158,882       55,371       57,313       271,566  
Cost of Revenues
     97,310       40,998       35,329       173,637  
                                 
Gross profit
     61,572       14,373       21,984       97,929  
                                 
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       1,676       34,988  
General and administrative
     11,221       4,940       7,457       23,618  
Restructuring costs
     219       96       -       315  
Impairment of goodwill and intangible assets
     -       31,879       -       31,879  
                                 
Operating income (loss)
     8,648       (43,611 )     12,851       (22,112 )
Financial expenses, net
                             (3,432 )
Other income
                             2,729  
Loss before taxes
                             (22,815 )
Tax benefit
                             (1,893 )
Net loss from continuing operations
                             (20,922 )
Net loss from discontinued operations
                             (2,270 )
Net loss
                             (23,192 )
                                 
Depreciation and amortization expenses
     4,960       9,723       3,989       18,672  

   
Year ended
December 31, 2011
  
   
Commercial
    
Defense
    
Services
    
Total
  
                         
Revenues
     117,185       79,252       48,894       245,331  
Cost of Revenues
     61,363       51,401       29,634       142,398  
                                 
Gross profit
     55,822       27,851       19,260       102,933  
                                 
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       2,135       35,370  
General and administrative
     11,705       6,348       6,685       24,738  
Restructuring costs
     78       320       -       398  
Impairment of goodwill and intangible assets
     -       17,846       -       17,846  
                                 
Operating income (loss)
     5,342       (22,902 )     10,440       (7,120 )
Financial expenses, net
                             (3,235 )
Other income
                             8,074  
Loss before taxes
                             (2,281 )
Tax benefit
                             (430 )
Net loss from continuing operations
                             (1,851 )
Net loss from discontinued operations
                             (3,999 )
Net loss
                             (5,850 )
                                 
Depreciation and amortization expenses
     4,755       10,115       4,654       19,524  

 
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,
  
   
2013
    
2012
    
2011
  
                   
South America and Central America
   $ 84,048     $ 115,190     $ 100,457  
Asia and Asia Pacific
     91,616       84,482       51,554  
North America
     26,155       39,087       62,456  
Europe
     23,096       23,906       21,126  
Africa
     9,951       8,901       9,738  
                         
    $ 234,866     $ 271,566     $ 245,331  

 
c.
Net revenues from a major Commercial Division customer located in Australia accounted for 21% of total consolidated revenues for the year ended December 31, 2013.

Net revenues from two major customers located in Australia and in Latin America accounted for 17% and 13% of total consolidated revenues for the year ended December 31, 2012, respectively.

Net revenues from a major customer located in North America accounted for 11% of total consolidated revenues for the year ended December 31, 2011.

 
d.
The Group's long-lived assets are located as follows:

   
December 31,
  
   
2013
    
2012
  
             
Israel
   $ 68,527     $ 71,283  
Latin America
     4,276       4,174  
United States
     1,936       2,157  
Europe
     9,453       9,059  
Other
     1,177       518  
                 
    $ 85,369     $ 87,191