Segment Information (Notes)

9 Months Ended

Mar. 29, 2013

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 nine months ended March 29, 2013 and March 30, 2012 is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 29, 2013			March 30, 2012			March 29, 2013			March 30, 2012
Total revenue
Americas	$	142,215		$	128,321		$	377,958		$	350,434
APJ	36,314			44,660			108,483			141,639
EMEA	54,059			26,409			110,254			81,426
Total revenue	$	232,588		$	199,390		$	596,695		$	573,499
Product revenue
Americas	$	119,341		$	107,580		$	312,681		$	285,065
APJ	19,854			25,253			59,280			81,144
EMEA	47,945			17,406			89,534			56,025
Total product revenue	$	187,140		$	150,239		$	461,495		$	422,234
Service revenue
Americas	$	22,874		$	20,741		$	65,277		$	65,369
APJ	16,460			19,407			49,203			60,495
EMEA	6,114			9,003			20,720			25,401
Total service revenue	$	45,448		$	49,151		$	135,200		$	151,265
Operating income (loss)
Americas	$	8,374		$	(2,083	)	$	13,005		$	(348	)
APJ	3,018			1,749			342			3,710
EMEA	(9,906		)	(1,157		)	(21,734		)	(9,169		)
Total operating income (loss)	$	1,486		$	(1,491	)	$	(8,387	)	$	(5,807	)

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 March 29, 2013, two customers from the Americas segment each accounted for approximately 13% of the Company's revenue and various agencies of the United States government, excluding system integrators (collectively, U.S. government), accounted for approximately 26% of the Company's revenue. For the three months ended March 30, 2012, two customer from the Americas segment each accounted for approximately 13% of the Company's revenue.

For the nine months ended March 29, 2013, one customer from the Americas segment accounted for approximately 16% of the Company's revenue and various agencies of the U.S. government, excluding system integrators, accounted for approximately 18% of the Company's revenue. For the nine months ended March 30, 2012, one customer from the Americas segment accounted for approximately 14% of the Company's revenue.

At March 29, 2013, 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 and France both accounted for 10% or more of total revenue, were $66.7 million or 29% for the three months ended March 29, 2013. For the nine months ended March 29, 2013, our international sales to Japan, the only single foreign country which accounted for 10% or more of total revenue, were $83.7 million or 14% of revenues. For the three and nine months ended March 30, 2012, our international sales to Japan, the only single foreign country which accounted for ten percent or more of revenues, were $35.7 million or 18%, and $111.0 million or 19% of revenues, respectively. No other individual foreign country's revenue accounted for 10% or more of revenues in the three and nine months ended March 29, 2013 and March 30, 2012.