Geographic and Business Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Geographic and Business Segment Information

21. Geographic and Business Segment Information

For 2014, 2013, and 2012 respectively, our revenue includes $40,666, $38,220, and $41,782 of revenue generated from customers outside of the United States.

Our two reporting segments are the Commercial Segment and the Government Segment.

Commercial Segment: We are one of two leading companies that enable 9-1-1 call delivery via cellular, VoIP, and next generation technology. Other TCS hosted and managed services include cellular network and device platforms and applications for text messaging and location-based services. We are also engaged in patent monetization activity which is included in this segment. Commercial Segment customers include wireless network operators, VoIP service providers, wireless device manufacturers, automotive industry suppliers, and state and local governments.

Government Segment: For our core segment customers, U.S. Department of Defense agencies, we provide cybersecurity services, support, and training and “C4ISR” (command, control, communications, computers, intelligence surveillance and reconnaissance) resources, wireless ground terminals and related support, management and resale of satellite bandwidth, and information technology outsource services. TCS engineers, furnishes, and supports ground terminals used for secure satellite-based and other line-of-sight and beyond-line-of-sight communications, as well as related components incorporating government-approved cryptologic devices and other hardened components for aerospace and defense.

Management evaluates segment performance based on gross profit and all revenues reported below are from external customers. We do not maintain information regarding segment assets. Accordingly, asset information by reportable segment is not presented.

The following tables set forth the results of our reportable segments and a reconciliation of segment gross profit to net loss for the years ended December 31:

	2014						2013						2012
	Comm.		Gvmt		Total		Comm.		Gvmt		Total		Comm.		Gvmt		Total
Revenue
Services	$	154,388	$	106,359	$	260,747	$	150,311	$	131,078	$	281,389	$	159,054	$	146,064	$	305,118
Systems		25,114		73,976		99,090		19,749		61,153		80,902		23,690		158,576		182,266
Total revenue		179,502		180,335		359,837		170,060		192,231		362,291		182,744		304,640		487,384
Direct costs of revenue
Direct cost of services		60,241		81,990		142,231		63,984		92,301		156,285		70,438		107,879		178,317
Direct cost of systems		12,461		57,579		70,040		16,593		50,445		67,038		15,222		133,638		148,860
Total direct cost of revenue		72,702		139,569		212,271		80,577		142,746		223,323		85,660		241,517		327,177
Gross profit
Services gross profit		94,147		24,369		118,516		86,327		38,777		125,104		88,616		38,185		126,801
Systems gross profit		12,653		16,397		29,050		3,156		10,708		13,864		8,468		24,938		33,406
Total gross profit	$	106,800	$	40,766	$	147,566	$	89,483	$	49,485	$	138,968	$	97,084	$	63,123	$	160,207

	2014			2013			2012
Total segment gross profit	$	147,566		$	138,968		$	160,207
Research and development expense		(41,723	)		(34,308	)		(36,602	)
Sales and marketing expense		(25,994	)		(28,495	)		(30,753	)
General and administrative expense		(50,820	)		(54,689	)		(54,277	)
Depreciation and amortization of property and equipment		(13,032	)		(14,853	)		(14,245	)
Amortization of acquired intangible assets		(3,797	)		(4,570	)		(4,374	)
Impairment of goodwill and long-lived assets		—			(31,977	)		(125,703	)
Interest expense		(8,264	)		(8,262	)		(7,383	)
Amortization of deferred finance fees		(1,005	)		(3,403	)		(757	)
Gain (loss) on early retirement of debt		—			(178	)		431
Other income (expense), net		(1,133	)		(239	)		(23	)
Net income (loss) before income taxes		1,798			(42,006	)		(113,479	)
Income tax (expense) benefit		(3,529	)		(16,591	)		15,491
Net loss	$	(1,731	)	$	(58,597	)	$	(97,988	)