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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2014
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 in 2012, in accordance with the Company organizational changes instituted that year, the Company's business is managed and reported as three separate reportable segments, comprised of the Company's named Commercial, Mobility (previously named Defense) and Services Divisions: Commercial Division - provides VSAT networks, satellite communication products, small cell solutions and associated professional services to service providers, satellite operators and Mobile Network Operators (MNOs) worldwide, including for high throughput satellites, or HTS, initiatives worldwide. Mobility Division provides on-the-Move / on-the-Pause satellite communication products and solutions to system integrators, defense and homeland security organizations worldwide and also includes the operations of Wavestream Corporation, or Wavestream, our subsidiary, whose sales are primarily to system integrators, 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: The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements which includes certain corporate overhead allocations. During 2014, the Company revised the measurement of each segment, due to a new allocation of corporate overhead that was based on new key performance indicators determined by Company's management as reviewed by the Chief Operating Decision Maker (“CODM”). Applying the same method of corporate overhead allocations used in 2014 to the results of the year ended December 31, 2013 would result in an operating income (loss) of $ (2,292), $ (10,738) and $ 8,937 for the Commercial, Mobility and Services segments, respectively and would have no effect on the operating income of the segments in the year ended December 31, 2012. 2. Financial data relating to reportable operating segments:
|  |  | Year ended December 31, 201 4
|  |  | Commercial |  |  | Mobility |  |  | Services |  |  | Total
Revenues |  |  |  | 130,306 |  |  |  | 54,817 |  |  |  | 50,010 |  |  |  | 235,133
Cost of Revenues |  |  |  | 77,587 |  |  |  | 37,023 |  |  |  | 36,888 |  |  |  | 151,498
Gross profit |  |  |  | 52,719 |  |  |  | 17,794 |  |  |  | 13,122 |  |  |  | 83,635
R&D expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Expenses incurred |  |  |  | 19,099 |  |  |  | 8,536 |  |  |  | - |  |  |  | 27,635
Less - grants |  |  |  | 2,015 |  |  |  | 462 |  |  |  | - |  |  |  | 2,477
|  |  |  | 17,084 |  |  |  | 8,074 |  |  |  | - |  |  |  | 25,158
Selling and marketing |  |  |  | 23,401 |  |  |  | 7,809 |  |  |  | 1,327 |  |  |  | 32,537
General and administrative |  |  |  | 7,808 |  |  |  | 5,961 |  |  |  | 7,134 |  |  |  | 20,903
Operating income (loss) |  |  |  | 4,426 |  |  |  | (4,050) |  |  |  | 4,661 |  |  |  | 5,037
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,837)
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,200
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,901
Net loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (701)
Net loss from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (795)
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,496)
Depreciation and amortization expenses |  |  |  | 4,885 |  |  |  | 8,220 |  |  |  | 2,846 |  |  |  | 15,951
|  |  | Year ended December 31, 2013
|  |  | Commercial |  |  | Mobility |  |  | 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)
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 |  |  | Mobility |  |  | 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 |  |  |  | 3989 |  |  |  | 18,672
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,
|  |  | 201 4 |  |  | 201 3 |  |  | 201 2
South America and Central America |  |  | $ | 110,825 |  |  | $ | 84,048 |  |  | $ | 115,190
Asia and Asia Pacific |  |  |  | 51,983 |  |  |  | 91,616 |  |  |  | 84,482
North America |  |  |  | 41,951 |  |  |  | 26,155 |  |  |  | 39,087
Europe |  |  |  | 16,393 |  |  |  | 23,096 |  |  |  | 23,906
Africa |  |  |  | 13,981 |  |  |  | 9,951 |  |  |  | 8,901
|  |  | $ | 235,133 |  |  | $ | 234,866 |  |  | $ | 271,566
c. During 2014, the Group did not have any customer generating revenues exceeding 10% of the Group's total revenues. Revenues from a major Commercial Division customer located in Australia accounted for 21% of total consolidated revenues for the year ended December 31, 201 3. Revenues from two major customers located in Australia and in Latin America accounted for 17% (included in Commercial Division) and 13% (included in Services Division) of total consolidated revenues for the year ended December 31, 2012, respectively. d. The Group's long-lived assets are located as follows:
|  |  | December 31,
|  |  | 201 4 |  |  | 201 3
Israel |  |  | $ | 66,457 |  |  | $ | 68,527
Latin America |  |  |  | 11,932 |  |  |  | 4,276
United States |  |  |  | 1,999 |  |  |  | 1,936
Europe |  |  |  | 9,486 |  |  |  | 9,453
Other |  |  |  | 1,019 |  |  |  | 1,177
|  |  | $ | 90,893 |  |  | $ | 85,369

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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