Segment Information (Notes)

6 Months Ended

Dec. 28, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company manages its business primarily on a geographical basis. Accordingly, the Company determined its operating and reporting segments, which are generally based on the location of its sales and service employees generating revenue, to be the Americas, Europe, and Asia-Pacific operations. The Americas segment includes both North and South America. The Europe segment ("EMEA") includes European countries, as well as the Middle East and Africa. The Asia-Pacific segment ("APJ") includes Australia, Japan, and all other Asian countries.

The Company's operating segments are determined based upon several criteria including: the Company's internal organizational structure; the manner in which the Company's operations are managed; the criteria used by the Company's Chief Executive Officer, the Chief Operating Decision Maker (“CODM”), to evaluate segment performance; and the availability of separate financial information. The accounting policies of the various segments are the same as those described in Note 3. Summary of Significant Accounting Policies of this Form 10-Q and in Note 2 of the Consolidated Financial Statements in the Company's fiscal year 2012 Annual Report on Form 10-K.

The Company's CODM evaluates the performance of its operating segments based on revenue and operating profit (loss). Revenues are generally based on the location of its sales and service employees generating revenues. Operating profit (loss) for each segment includes related cost of sales and operating expenses directly attributable to the segment. A significant portion of the segments’ expenses arise from shared services and infrastructure that the Company has historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include costs of centralized research and development, legal, accounting, information technology services, treasury and other corporate infrastructure expenses. These corporate charges are allocated to the segments and are reassessed on an annual basis. The allocations have been determined on a basis that the Company considers to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. The Company does not include intercompany transfers between segments for management reporting purposes.

Segment Results

Summary information by operating segment for the three and six months ended December 28, 2012 and December 30, 2011 is as follows (in thousands):

	Three Months Ended						Six Months Ended
	December 28, 2012			December 30, 2011			December 28, 2012			December 30, 2011
Total revenue
Americas	$	112,358		$	109,721		$	235,743		$	222,113
APJ	27,735			56,873			72,169			96,979
EMEA	31,133			28,620			56,195			55,017
Total revenue	$	171,226		$	195,214		$	364,107		$	374,109
Product revenue
Americas	$	91,698		$	88,429		$	193,340		$	177,485
APJ	12,605			34,090			39,426			55,891
EMEA	23,737			20,524			41,589			38,619
Total product revenue	$	128,040		$	143,043		$	274,355		$	271,995
Service revenue
Americas	$	20,660		$	21,292		$	42,403		$	44,628
APJ	15,130			22,783			32,743			41,088
EMEA	7,396			8,096			14,606			16,398
Total service revenue	$	43,186		$	52,171		$	89,752		$	102,114
Operating income (loss)
Americas	$	3,055		$	1,868		$	4,631		$	1,735
APJ	(1,265		)	1,883			(2,676		)	1,961
EMEA	(4,670		)	(5,699		)	(11,828		)	(8,012		)
Total operating loss	$	(2,880	)	$	(1,948	)	$	(9,873	)	$	(4,316	)

The Company derives the results of the business segments directly from its internal management reporting system. The presentation of our revenue for segment information purposes differs from the accompanying unaudited condensed consolidated statements of operations. The segment information is presented on the basis which the Company's CODM evaluates the performance of its operating segments. The combined product and service revenue is allocated to product and service revenue on a contractual basis for segment information purposes.

The Company's assets are located primarily in the United States and are not allocated to any specific region. The Company does not measure the performance of its geographic regions on any asset-based metrics. Therefore, geographic information is presented only for revenue and operating profit (loss).

Customer information

For the three months ended December 28, 2012, one customer from the Americas segment accounted for approximately 19% of the Company's revenue and various agencies of the United States government, excluding system integrators (collectively, U.S. government), accounted for approximately 11% of the Company's revenue. For the three months ended December 30, 2011, one customer from the Americas segment accounted for approximately 12% of the Company's revenue and various agencies of the U.S. government accounted for approximately 10% of the Company's revenue.

For the six months ended December 28, 2012, one customer from the Americas segment accounted for approximately 18% of the Company's revenue and various agencies of the U.S. government, excluding system integrators, accounted for approximately 13% of the Company's revenue. For the six months ended December 30, 2011, one customer from the Americas segment accounted for approximately 15% of the Company's revenue.

At December 28, 2012, one customer accounted for approximately 15% of the Company's accounts receivable. At June 29, 2012, one customer accounted for approximately 28% of the Company's accounts receivable.

Geographic Information

International sales to Japan, the only single foreign country which accounted for 10% or more of revenues, were $18.6 million or 11% and $55.0 million or 15% of revenues for the three and six months ended December 28, 2012, respectively. For the three and six months ended December 30, 2011, our international sales to Japan, the only single foreign country which accounted for ten percent or more of revenues, were $41.9 million or 21% and $75.2 million or 20% of revenues, respectively. No other individual foreign country's revenue accounted for 10% or more of revenues in the three and six months ended December 28, 2012 and December 30, 2011.