Segments

The Company has two operating segments which are both reportable segments: (i) Product; and (ii) Service, which are comprised of the Company’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:



	Years ended December 31,
(in thousands)	2013			2012			2011
Revenue
Product	$	62,393		$	65,028		$	50,322
Service	40,105			35,929			29,181
Total revenue	102,498			100,957			79,503

Cost of revenue
Product	21,714			21,551			17,465
Service	16,595			15,070			14,042
Total cost of revenue	38,309			36,621			31,507

Gross profit
Product	40,679			43,477			32,857
Service	23,510			20,859			15,139
Total gross profit	64,189			64,336			47,996

Operating expenses	74,749			59,440			48,802
Interest income (expense), net and other	204			(1,376		)	(1,388		)
(Loss) income before income taxes	$	(10,356	)	$	3,520		$	(2,194	)

The following tables present the Company’s revenue by product line, as well as revenue and long-lived assets by geographic region.



	Years ended December 31,
(in thousands)	2013		2012		2011
Revenue
Product
Device	$	46,636	$	47,725	$	37,088
Software	15,757		17,303		13,234
Total product	62,393		65,028		50,322
Service
Maintenance and support	31,559		26,237		21,439
Professional services and training	8,546		9,692		7,742
Total service	40,105		35,929		29,181
Total revenue	$	102,498	$	100,957	$	79,503

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



	Years ended December 31,
(in thousands)	2013		2012		2011
Revenue
United States	$	91,763	$	90,108	$	73,719
International	10,735		10,849		5,784
Total revenue	$	102,498	$	100,957	$	79,503

The Company’s tangible long-lived assets by geographic region, consisting of net property and equipment, are summarized as follows:



	December 31,
(in thousands)	2013		2012		2011
Property and equipment, net
United States	$	5,249	$	3,465	$	2,646
International	116		166		55
Total property and equipment, net	$	5,365	$	3,631	$	2,701

At December 31, 2013 and 2012, no customer accounted for 10% or more of accounts receivable. For the years ended December 31, 2013, 2012 and 2011, no customer represented 10% or more of revenue.