Segments

12 Months Ended

Dec. 31, 2019

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)	2019			2018			2017
Revenue
Product	$	92,561		$	97,447		$	91,585
Service	87,940			82,183			74,404
Total revenue	180,501			179,630			165,989

Cost of revenue
Product	29,039			27,425			27,244
Service	42,363			40,318			37,683
Total cost of revenue	71,402			67,743			64,927

Gross profit
Product	63,522			70,022			64,341
Service	45,577			41,865			36,721
Total gross profit	109,099			111,887			101,062

Operating expenses	123,222			118,192			111,762
(Loss) income from operations	(14,123		)	(6,305		)	(10,700		)
Interest income (expense), net and other	(3,837		)	(3,720		)	562
Loss before income taxes	$	(17,960	)	$	(10,025	)	$	(10,138	)

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)	2019		2018		2017
Revenue
Product
Device	$	61,224	$	60,130	$	61,746
Software	31,337		37,317		29,839
Total product	92,561		97,447		91,585
Service
Maintenance and support	68,846		62,267		52,342
Professional services and training	19,094		19,916		22,062
Total service	87,940		82,183		74,404
Total revenue	$	180,501	$	179,630	$	165,989

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



	Years ended December 31,
(in thousands)	2019		2018		2017
Revenue
United States	$	164,827	$	161,338	$	148,993
International	15,674		18,292		16,996
Total revenue	$	180,501	$	179,630	$	165,989

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



	December 31,
(in thousands)	2019		2018		2017
Property and equipment, net
United States	$	6,364	$	6,265	$	4,621
International	2,297		1,203		1,130
Total property and equipment, net	$	8,661	$	7,468	$	5,751