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Segment Information and Concentrations of Risk
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Information and Concentrations of Risk
Segment Information and Concentrations of Risk
Segment Information
The Company operates in the wireless broadband technology industry and senior management makes decisions about allocating resources based on the following reportable segments:
The Mobile Computing Products segment includes the Company's MiFi brand of Intelligent Mobile Hotspot devices, USB modems and embedded modules that enable data transmission and services via cellular wireless networks. All products within the segment represent a single product family.
The M2M Products and Solutions segment includes the Company's M2M embedded modules, integrated M2M communications devices and our service delivery platform, the N4ATM DM and N4ATM CMS that provides easy device management and service enablement.
Segment net revenues and segment operating losses represent the primary financial measures used by senior management to assess performance and include the net revenues, cost of net revenues, sales and other operating expenses for which management is held accountable. Segment operating expenses include sales and marketing, research and development, general and administrative and amortization expenses that are directly related to individual segments. Segment losses also include acquisition-related costs, purchase price amortization, impairment charges, restructuring and integration costs.
The table below presents net revenues from external customers, operating loss and identifiable assets for our reportable segments (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Net revenues by reportable segment:
 
 
 
 
 
Mobile Computing Products
$
145,500

 
$
297,499

 
$
312,508

M2M Products and Solutions
39,745

 
37,554

 
31,780

Total
$
185,245

 
$
335,053

 
$
344,288

Operating loss:
 
 
 
 
 
Mobile Computing Products
$
(23,339
)
 
$
(27,939
)
 
$
(22,924
)
M2M Products and Solutions
(12,234
)
 
(15,282
)
 
(65,819
)
Total
$
(35,573
)
 
$
(43,221
)
 
$
(88,743
)
 
 
Year Ended December 31,
 
2014
 
2013
Identifiable assets by reportable segment:
 
 
 
Mobile Computing Products
$
79,368

 
$
96,516

M2M Products and Solutions
15,652

 
14,949

Total
$
95,020

 
$
111,465


The Company has operations in the United States, Canada, Europe, Latin America and Asia. The following table details the geographic concentration of the Company’s assets in the United States, Canada, Europe, Latin America and Asia (in thousands):
 
Year Ended December 31,
 
2014
 
2013
United States
$
91,843

 
$
108,932

Canada
587

 
808

Europe, Latin America and Asia
2,590

 
1,725

 
$
95,020

 
$
111,465


The following table details the Company’s concentration of net revenues by geographic region based on shipping destination:
 
Year Ended December 31,
 
2014
 
2013
 
2012
United States and Canada
91.2
%
 
95.6
%
 
93.1
%
Latin America
1.0

 
0.8

 
2.4

Europe, Middle East, Africa and other
6.6

 
3.4

 
4.1

Asia and Australia
1.2

 
0.2

 
0.4

 
100.0
%
 
100.0
%
 
100.0
%

Concentrations of Risk
Substantially all of the Company’s net revenues are derived from sales of wireless access products. Any significant decline in market acceptance of the Company’s products or in the financial condition of the Company’s customers would have an adverse effect on the Company’s results of operations and financial condition.
A significant portion of the Company’s net revenues come from a small number of customers. One customer accounted for 51.6% , 58.0% and 57.5% of 2014, 2013 and 2012 net revenues, respectively. All significant customers are included in the Company’s Mobile Computing Products segment.
A significant portion of the Company’s accounts receivables comes from a small number of customers. At December 31, 2014, the Company had one customer who accounted for 46.1% of total accounts receivable. At December 31, 2013, the Company had three customers who accounted for 24.5%, 12.6% and 12.0% of total accounts receivable.
The Company outsources its manufacturing to several third-party manufacturers. If they were to experience delays, disruptions, capacity constraints or quality control problems in its manufacturing operations, product shipments to the Company’s customers could be delayed or its customers could consequently elect to cancel the underlying order, which would negatively impact the Company’s net revenues and results of operations.