Segments (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Operating Segment Revenues and Profitability

Operating segment revenues and profitability for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands, except percentages):

	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
				Network									Network
	Software			Connectivity			Consolidated			Software			Connectivity			Consolidated
Net revenue	$	34,052		$	19,019		$	53,071		$	24,198		$	16,913		$	41,111
Costs of revenue		14,360			11,983			26,343			10,233			10,855			21,088
Gross profit		19,692			7,036			26,728			13,965			6,058			20,023
Gross margin		58	%		37	%		50	%		58	%		36	%		49	%
Operating expenses:
Direct selling and marketing		14,668			936			15,604			11,501			933			12,434
Direct research and development		6,659			-			6,659			5,149			-			5,149
Indirect		8,695			1,217			9,912			7,299			1,018			8,317
Total operating expenses		30,022			2,153			32,175			23,949			1,951			25,900
Income (loss) from operations	$	(10,330	)	$	4,883		$	(5,447	)	$	(9,984	)	$	4,107		$	(5,877	)
	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
				Network									Network
	Software			Connectivity			Consolidated			Software			Connectivity			Consolidated
Net revenue	$	66,518		$	37,891		$	104,409		$	44,207		$	33,958		$	78,165
Costs of revenue		28,057			23,794			51,851			18,468			21,693			40,161
Gross profit		38,461			14,097			52,558			25,739			12,265			38,004
Gross margin		58	%		37	%		50	%		58	%		36	%		49	%
Operating expenses:
Direct selling and marketing		28,654			1,759			30,413			20,315			1,689			22,004
Direct research and development		12,952			-			12,952			8,623			-			8,623
Indirect		17,730			2,286			20,016			12,774			1,923			14,697
Total operating expenses		59,336			4,045			63,381			41,712			3,612			45,324
Income (loss) from operations	$	(20,875	)	$	10,052		$	(10,823	)	$	(15,973	)	$	8,653		$	(7,320	)