Segments (Tables)

3 Months Ended

Mar. 31, 2014

Operating Segment Revenues and Profitability

Operating segment revenues and profitability for the three months ended March 31, 2014 and 2013 were as follows (in thousands, except percentages):

	Three months ended March 31, 2014									Three months ended March 31, 2013
	Software			Network Connectivity			Consolidated			Software			Network Connectivity			Consolidated
Net revenue	$	20,009		$	17,045		$	37,054		$	16,172		$	15,473		$	31,645
Costs of revenue		8,235			10,838			19,073			6,435			10,033			16,468
Gross profit		11,774			6,207			17,981			9,737			5,440			15,177
Gross margin		59	%		36	%		49	%		60	%		35	%		48	%
Operating expenses:
Direct selling and marketing		8,813			757			9,570			6,963			992			7,955
Direct research and development		3,474			—			3,474			2,539			—			2,539
Indirect		5,266			774			6,040			4,745			999			5,744
(Loss) income from operations	$	(5,779	)	$	4,676		$	(1,103	)	$	(4,510	)	$	3,449		$	(1,061	)