Segments (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Operating Segment Revenues and Profitability

Operating segment revenues and profitability for three and nine months ended September 30, 2016 and 2015 were as follows (in thousands, except percentages):

	Three Months Ended September 30, 2016									Three Months Ended September 30, 2015
				Network									Network
	Software			Connectivity			Consolidated			Software			Connectivity			Consolidated
Net revenue	$	44,222		$	22,796		$	67,018		$	36,709		$	19,369		$	56,078
Costs of revenue		18,534			12,805			31,339			14,815			12,278			27,093
Gross profit		25,688			9,991			35,679			21,894			7,091			28,985
Gross margin		58	%		44	%		53	%		60	%		37	%		52	%
Operating expenses:
Direct selling and marketing		17,257			843			18,100			16,075			895			16,970
Direct research and development		8,617			-			8,617			6,866			-			6,866
Indirect		13,146			807			13,953			7,943			1,109			9,052
Total operating expenses		39,020			1,650			40,670			30,884			2,004			32,888
Income (Loss) from operations	$	(13,332	)	$	8,341		$	(4,991	)	$	(8,990	)	$	5,087		$	(3,903	)
	Nine Months Ended September 30, 2016									Nine Months Ended September 30, 2015
				Network									Network
	Software			Connectivity			Consolidated			Software			Connectivity			Consolidated
Net revenue	$	128,130		$	65,073		$	193,203		$	103,227		$	57,260		$	160,487
Costs of revenue		52,473			39,727			92,200			42,872			36,072			78,944
Gross profit		75,657			25,346			101,003			60,355			21,188			81,543
Gross margin		59	%		39	%		52	%		58	%		37	%		51	%
Operating expenses:
Direct selling and marketing		49,926			2,536			52,462			44,729			2,654			47,383
Direct research and development		25,065			-			25,065			19,818			-			19,818
Indirect		34,872			2,376			37,248			25,673			3,395			29,068
Total operating expenses		109,863			4,912			114,775			90,220			6,049			96,269
Income (Loss) from operations	$	(34,206	)	$	20,434		$	(13,772	)	$	(29,865	)	$	15,139		$	(14,726	)