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 September 30,					Nine months ended September 30,
(in thousands)	2012		2011			2012			2011
Revenue
Product	$	16,851	$	13,087		$	47,643		$	36,648
Service	9,117		7,314			26,322			21,149
Total revenue	25,968		20,401			73,965			57,797

Gross profit
Product	11,614		8,797			31,505			24,680
Service	5,374		3,453			15,188			10,580
Total gross profit	16,988		12,250			46,693			35,260
Research and development	3,043		2,379			8,248			6,970
Sales and marketing	8,532		7,542			24,064			20,717
General and administrative	3,745		3,197			10,449			8,278
Income (loss) from operations	1,668		(868		)	3,932			(705		)
Interest income	60		5			86			13
Interest expense and other finance charges	—		(112		)	(74		)	(234		)
Other income (expense), net	50		132			(1,442		)	(1,085		)
Income (loss) before income taxes	$	1,778	$	(843	)	$	2,502		$	(2,011	)

Supplemental information

The following table presents the Company’s revenue by product line:



	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2012		2011		2012		2011
Revenue
Product
Devices	$	12,140	$	9,513	$	34,802	$	26,852
Software	4,711		3,574		12,841		9,796
Total product	16,851		13,087		47,643		36,648

Service
Maintenance and support	6,687		5,536		19,158		15,705
Professional services and training	2,430		1,778		7,164		5,444
Total service	9,117		7,314		26,322		21,149
Total revenue	$	25,968	$	20,401	$	73,965	$	57,797

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



	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2012		2011		2012		2011
Revenue
United States	$	23,332	$	18,770	$	65,502	$	53,049
International	2,636		1,631		8,463		4,748
Total revenue	$	25,968	$	20,401	$	73,965	$	57,797