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CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION |
NOTE 13:- | CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Segments are managed separately and can be described as follows: The Company's business is managed and reported as three separate reportable segments, comprised of the Company's named Commercial, Mobility and Services division:
| · | Commercial division - provides advanced fixed satellite networks, satellite communication systems, small cell solutions and associated professional services and comprehensive turnkey solutions and fully managed satellite services solutions. Customers are service providers, satellite operators, mobile network operators, or MNOs, telecommunication companies, or Telcos, and large enterprises worldwide. The division focuses on high
| · | throughput satellites, or HTS, opportunities worldwide, with focus on cellular backhaul, and are driving meaningful partnerships with satellite operators to leverage the Company’s technology and breadth of services to deploy and operate the ground segment.
| · | Mobility division – provides advanced, satellite communication on the move systems, including airborne, maritime and ground-mobile satellite systems and solutions. Customers are service providers, system integrators, defense and homeland security organizations, as well as other commercial entities worldwide. The division provides solutions for land, sea and air connectivity, while placing major focus on the high-growth market of In-Flight Connectivity, or IFC, with its unique leading technology. The division’s portfolio comprises high-speed modems, high performance on-the-move antennas and high efficiency, high power SSPAs and BUCs.
| · | Services division – provides managed network and services for rural broadband access through the Company’s subsidiaries. The Company’s connectivity solutions have been implemented in large and national scale projects. The division’s satellite and terrestrial networks provide broadband internet and telephony services to thousands of rural communities and schools. The Company's turnkey solutions start with supplying network infrastructure, continue through ensuring high-quality, reliable connectivity and include full network support and maintenance, as well as support for applications that run on the installed network.
| 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 which includes certain corporate overhead allocations.
| 2. | Financial data relating to reportable operating segments:
|  | Year ended December 31, 2017 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  | $ | 83,866 |  |  | $ | 88,397 |  |  | $ | 110,493 |  |  | $ | 282,756 |
Cost of revenues |  |  | 53,447 |  |  |  | 46,493 |  |  |  | 100,321 |  |  |  | 200,261 |
Gross profit |  |  | 30,419 |  |  |  | 41,904 |  |  |  | 10,172 |  |  |  | 82,495 |
Research and development, net |  |  | 12,172 |  |  |  | 15,842 |  |  |  | - |  |  |  | 28,014 |
Selling and marketing |  |  | 16,925 |  |  |  | 5,782 |  |  |  | 1,052 |  |  |  | 23,759 |
General and administrative |  |  | 6,016 |  |  |  | 6,326 |  |  |  | 7,519 |  |  |  | 19,861 |
Operating income (loss) |  |  | (4,694 | ) |  |  | 13,954 |  |  |  | 1,601 |  |  |  | 10,861 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,307 |
Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,554 |
Taxes on income (benefit) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (247 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,801 |
Depreciation and amortization expenses |  | $ | 3,600 |  |  | $ | 7,902 |  |  | $ | 1,638 |  |  | $ | 13,140 |
|  | Year ended December 31, 2016 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  | $ | 94,001 |  |  | $ | 62,911 |  |  | $ | 122,639 |  |  | $ | 279,551 |
Cost of revenues |  |  | 57,403 |  |  |  | 40,962 |  |  |  | 105,696 |  |  |  | 204,061 |
Gross profit |  |  | 36,598 |  |  |  | 21,949 |  |  |  | 16,943 |  |  |  | 75,490 |
Research and development, net |  |  | 12,599 |  |  |  | 12,254 |  |  |  | - |  |  |  | 24,853 |
Selling and marketing |  |  | 17,153 |  |  |  | 5,483 |  |  |  | 775 |  |  |  | 23,411 |
General and administrative |  |  | 10,657 |  |  |  | 9,138 |  |  |  | 6,676 |  |  |  | 26,471 |
Operating income (loss) |  |  | (3,811 | ) |  |  | (4,926 | ) |  |  | 9,492 |  |  |  | 755 |
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,843 | )
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,088 | )
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,252 |
Loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,340 | )
Depreciation and amortization expenses |  | $ | 4,467 |  |  | $ | 7,530 |  |  | $ | 1,111 |  |  | $ | 13,108 |
|  | Year ended December 31, 2015 |
|  | Commercial |  |  | Mobility |  |  | Services |  |  | Total |
Revenues |  | $ | 100,935 |  |  | $ | 41,112 |  |  | $ | 55,496 |  |  | $ | 197,543 |
Cost of revenues |  |  | 63,425 |  |  |  | 30,715 |  |  |  | 49,178 |  |  |  | 143,318 |
Impairment of long-lived assets |  |  | - |  |  |  | - |  |  |  | 10,137 |  |  |  | 10,137 |
Gross profit (loss) |  |  | 37,510 |  |  |  | 10,397 |  |  |  | (3,819 | ) |  |  | 44,088 |
Research and development, net |  |  | 14,175 |  |  |  | 8,237 |  |  |  | - |  |  |  | 22,412 |
Selling and marketing |  |  | 16,839 |  |  |  | 6,947 |  |  |  | 1,037 |  |  |  | 24,823 |
General and administrative |  |  | 6,622 |  |  |  | 6,271 |  |  |  | 5,751 |  |  |  | 18,644 |
Restructuring costs |  |  | 1,078 |  |  |  | 421 |  |  |  | 9 |  |  |  | 1,508 |
Goodwill impairment |  |  | - |  |  |  | 20,402 |  |  |  | - |  |  |  | 20,402 |
Operating loss |  |  | (1,204 | ) |  |  | (31,881 | ) |  |  | (10,616 | ) |  |  | (43,701 | )
Financial expenses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,243 | )
Loss before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (50,944 | )
Taxes on income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,190 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (52,134 | )
Loss from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (200 | )
Loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (52,334 | )
Depreciation and amortization expenses |  | $ | 4,546 |  |  | $ | 7,322 |  |  | $ | 3,204 |  |  | $ | 15,072 |
| 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, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Latin America |  | $ | 132,134 |  |  | $ | 143,491 |  |  | $ | 100,443 |
APAC |  |  | 34,586 |  |  |  | 47,094 |  |  |  | 47,843 |
North America |  |  | 73,921 |  |  |  | 54,728 |  |  |  | 28,242 |
EMEA |  |  | 42,115 |  |  |  | 34,238 |  |  |  | 21,015 |
|  | $ | 282,756 |  |  | $ | 279,551 |  |  | $ | 197,543 |
| c. | Revenues from a major Services division customer located in Peru accounted for 28%, 34% and 11% of the total consolidated revenues for the years ended December 31, 2017, 2016 and 2015, respectively.
| d. | The Group's long-lived assets are located as follows:
Property and Equipment, net:
|  | December 31, |
|  | 2017 |  |  | 2016 |
Israel |  | $ | 62,606 |  |  | $ | 62,648 |
Latin America |  |  | 5,000 |  |  |  | 5,740 |
United States |  |  | 3,733 |  |  |  | 1,705 |
Europe |  |  | 9,426 |  |  |  | 9,641 |
Other |  |  | 1,481 |  |  |  | 1,103 |
|  | $ | 82,246 |  |  | $ | 80,837 |
| e. | Commencing on the first quarter of 2018, in order to more accurately reflect the Company's management focus, organizational alignment, customer base and end markets, the Company will operate in three new business segments, as follows:
| · | Fixed Networks includes broadband satellite network equipment including the Company’s cellular backhaul solutions and services for Telcos, as well as its products and solutions for enterprises, consumers and governments worldwide, which are currently under the Commercial division. In addition, it includes the Company's network operation and managed services activity in Peru and Colombia, which are currently part of the Services division.
| · | Mobility Solutions (previously named Mobility division) will remain intact and will continue to include satellite communication equipment for on-the-move satellite communications including the Company’s In Flight Connectivity (“IFC”) activity as well as its defense and homeland security activities.
| · | Terrestrial Infrastructure Projects includes the Company's construction of fiber network in Peru, which is currently part of the Services division.
The above changes in the Company's reportable segments will have no effect on the goodwill assignment among the divisions.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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