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:



	Years ended December 31,									Six Months Ended June 30,
(in thousands)	2009			2010			2011			2011			2012
										(unaudited)			(unaudited)
Revenue
Product	$	25,985		$	35,516		$	50,322		$	23,561		$	30,792
Service	15,154			21,287			29,181			13,835			17,205
Total revenue	41,139			56,803			79,503			37,396			47,997

Gross profit
Product	14,439			23,294			32,857			15,883			19,891
Service	10,834			12,334			15,139			7,127			9,814
Total gross profit	25,273			35,628			47,996			23,010			29,705
Research and development	5,992			6,698			9,335			4,591			5,205
Sales and marketing	16,468			20,953			28,151			13,175			15,532
General and administrative	3,489			6,723			11,316			5,081			6,704
Income (loss) from operations	(676		)	1,254			(806		)	163			2,264
Interest income	52			33			17			8			26
Interest expense and other finance charges	(141		)	(77		)	(332		)	(122		)	(74		)
Other income (expense), net	(227		)	(367		)	(1,073		)	(1,217		)	(1,492		)
Income (loss) before income taxes	$	(992	)	$	843		$	(2,194	)	$	(1,168	)	$	724

Supplemental information

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




	Years ended December 31,						Six months ended June 30,
(in thousands)	2009		2010		2011		2011		2012
							(unaudited)		(unaudited)

Revenue
Product
Device	$	20,215	$	26,728	$	37,088	$	17,339	$	22,662
Software	5,770		8,788		13,234		6,222		8,130

Total product	25,985		35,516		50,322		23,561		30,792

Service
Maintenance and support	13,755		17,447		21,439		10,169		12,470
Professional services and training	1,399		3,840		7,742		3,666		4,735

Total service	15,154		21,287		29,181		13,835		17,205

Total revenue	$	41,139	$	56,803	$	79,503	$	37,396	$	47,997

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




	Years ended December 31,						Six months ended June 30,
(in thousands)	2009		2010		2011		2011		2012
							(unaudited)		(unaudited)

Revenue
United States	$	37,517	$	51,266	73,719		34,270		42,170
International	3,622		5,537		5,784		3,126		5,827

Total revenue	$	41,139	$	56,803	$	79,503	$	37,396	$	47,997

Of the Company’s long-lived assets (in thousands) of $1,311, $1,307, $2,701 and $2,694 as of December 31, 2009, 2010, and 2011 and June 30, 2012 (unaudited), respectively, $1,311, $1,302, $2,646 and $2,565 were located in the United States, respectively.