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Segment Information (Tables)

9 Months Ended

Oct. 01, 2023

Schedule of Reportable Segments and Reconciliation of Segment Contribution Income (Loss) to Income (Loss) Before Income Taxes

Financial information for each reportable segment and a reconciliation of segment contribution income (loss) to loss before income taxes is as follows:


	Three Months Ended						Nine Months Ended
(In thousands)	October 1, 2023			October 2, 2022			October 1, 2023			October 2, 2022
Net Revenue:
Connected Home	$	127,335		$	150,581		$	328,487		$	409,787
SMB		70,510			99,006			223,679			273,582
Total net revenue	$	197,845		$	249,587		$	552,166		$	683,369

Contribution Income (loss):
Connected Home	$	11,885		$	(512	)	$	9,558		$	(3,033	)
Contribution margin		9.3	%		(0.3	)%		2.9	%		(0.7	)%
SMB	$	14,913		$	23,683		$	43,382		$	53,844
Contribution margin		21.2	%		23.9	%		19.4	%		19.7	%
Total segment contribution income	$	26,798		$	23,171		$	52,940		$	50,811
Corporate and unallocated costs		(21,546	)		(21,392	)		(65,495	)		(62,532	)
Amortization of intangibles (1)		—			(129	)		(257	)		(386	)
Stock-based compensation expense		(4,285	)		(3,440	)		(13,637	)		(13,266	)
Goodwill impairment		—			—			—			(44,442	)
Intangibles impairment		(1,071	)		—			(1,071	)		—
Restructuring and other charges		(366	)		(361	)		(2,703	)		(911	)
Litigation reserves, net		(178	)		—			(178	)		(20	)
Other income (expenses), net (2)		2,280			638			11,685			(1,164	)
Income (loss) before income taxes	$	1,632		$	(1,513	)	$	(18,716	)	$	(71,910	)

(1)

Amounts exclude amortization expense related to patents within purchased intangibles in cost of revenue.

(2)

Amounts included gain/(loss), net from litigation settlements of $6.0 million for the nine months ended October 1, 2023, and gain/(loss), net from derivatives not designated as hedging instruments of $1.3 million and $2.2 million, for the three and nine months ended October 1, 2023, respectively, and $3.4 million and $6.9 million for the three and nine months ended October 2, 2022, respectively.

Schedule of Net Revenue by Geography

The following table shows net revenue by geography:


	Three Months Ended				Nine Months Ended
(In thousands)	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
United States (U.S.)	$	138,013	$	164,890	$	368,772	$	445,170
Americas (excluding U.S.)		3,005		4,470		10,779		12,866
EMEA (1)		35,684		44,827		111,023		126,643
APAC (1)		21,143		35,400		61,592		98,690
Total net revenue	$	197,845	$	249,587	$	552,166	$	683,369

(1)

No individual foreign country represented more than 10% of the Company's total net revenue in the periods presented.

Schedule of Long-Lived Asset By Geographic Region

The following table presents the Company's long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:


(In thousands)	October 1, 2023		December 31, 2022
United States (U.S.)	$	26,640	$	32,142
Americas (excluding U.S.)		4,805		2,367
EMEA		3,897		3,564
Singapore		6,364		4,032
APAC (excluding Singapore) (1)		6,341		7,988
Total	$	48,047	$	50,093

(1)

No individual country represented more than 10% of the Company's total long-lived assets in the periods presented.