SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 14-SEGMENT REPORTING

The Company’s reporting segments are as follows:

• Equipment- Sales of equipment, including network infrastructure and application products. Network infrastructure products mainly include broadband products. Network application products mainly include wireless infrastructure technologies.

• Services-Providing services and support for our equipment products and also the new operational support segment.

The Company’s Chief Operating Decision Makers make financial decisions and resource allocations based on information they receive from their internal management system and currently evaluate the operating performance and allocates resources to the reporting segments based on segment revenue, gross profit and income before income taxes. Cost of sales and direct expenses in relation to production are assigned to the reporting segments. The accounting policies used in measuring segment assets and operating performance are the same as those used at the consolidated level.

Summarized below are the Company’s segment net sales, gross profit and income before income taxes for the years ended December 31, 2020, 2019 and 2018 based on the current reporting segment structure.

	Years Ended December 31,
			% of				% of				% of
			Net				Net				Net
Sales by Segment	2020		Sales		2019		Sales		2018		Sales
	(in thousands, except percentages)
Equipment	$	12,385	51	%	$	43,722	67	%	$	97,680	84	%
Services		11,925	49	%		21,901	33	%		18,264	16	%
Total	$	24,310	100	%	$	65,623	100	%	$	115,944	100	%

	Years Ended December 31,
			Gross Profit					Gross Profit				Gross Profit
Gross profit by Segment	2020		%			2019		%		2018		%
	(in thousands, except percentages)
Equipment	$	1,237		10	%	$	14,156	32	%	$	25,598	26	%
Services		2,292		19	%		10,001	46	%		6,670	37	%
Total	$	3,529		15	%	$	24,157	37	%	$	32,268	28	%

	Years ended December 31,
Segment income and Income (loss) before income taxes	2020			2019			2018
	(in thousands)
Equipment	$	(7,640	)	$	51		$	13,398
Services		2,292			10,001			6,670
Total segment income (loss)		(5,348	)		10,052			20,068
General and corporate		(20,110	)		(13,996	)		(15,626	)
Income (loss) before income taxes	$	(25,458	)	$	(3,944	)	$	4,442

General and corporate expenses include all un-allocated expenses such as sales and marketing, general and administration and common R&D expenses, equity income (loss) of associates, and investment impairment.

Sales are attributed to a geographical area based upon the location of the customer. Sales data by geographical area are as follows:

	Years Ended December 31,
			% of					% of					% of
	2020		Net Sales			2019		Net Sales			2018		Net Sales
	(in thousands, except percentages)
Net Sales by Region
China	$	2,286		10	%	$	2,439		4	%	$	3,146		3	%
India		9,807		40	%		37,206		57	%		70,106		60	%
Japan		12,208		50	%		21,761		33	%		35,504		31	%
Taiwan	—		—		%		3,515		5	%		6,445		5	%
Other		9	—		%		702		1	%		743		1	%
Total	$	24,310	100		%	$	65,623	100		%	$	115,944	100		%

Long-lived assets, consisting of property, plant and equipment, by geographical area are as follows:

	December 31,
	2020		2019
	(in thousands)
China	$	565	$	962
Other	55		130
Total long-lived assets	$	620	$	1,092