XML 38 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION
 12 Months Ended
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.