Segments

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segments

Segments

The Company has two operating segments which are both reportable business segments: (i) Product; and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results from operations. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer.

The CODM regularly receives information related to revenue, cost of revenue, and gross profit for each operating segment, and uses this information to assess performance and make resource allocation decisions. All other financial information, including operating expenses and assets, is prepared and reviewed by the CODM on a consolidated basis. Assets are not a measure used to assess the performance of the Company by the CODM, therefore the Company does not report assets by segment internally or in its financial statements.

The following table presents a summary of the operating segments:

	Three Months Ended March 31,
(in thousands)	2012		2011
Revenue
Product	$	14,637	$	11,636
Service	8,482		6,687
Total revenue	23,119		18,323
Cost of revenue
Products	5,429		3,652
Services	3,569		3,162
Total cost of revenue	8,998		6,814
Gross profit	$	14,121	$	11,509

Supplemental information

The following tables and discussion present the Company’s revenue by product line, as well as revenue by geographic region:

	Three Months Ended March 31,
(in thousands)	2012		2011
Revenue
Product
Devices	$	10,353	$	8,259
Software	4,284		3,377
Total product	14,637		11,636
Service
Maintenance and support	6,110		4,975
Professional services and training	2,372		1,712
Total service	8,482		6,687
Total revenue	$	23,119	$	18,323

The Company’s revenue by geographic region, based on customer location, is summarized as follows:

	Three Months Ended March 31,
(in thousands)	2012		2011
Revenue
United States	$	20,151	$	16,435
International	2,968		1,888
Total revenue	$	23,119	$	18,323