Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business comprises two operating segments:

•Media & Content: selects, manages, provides lab services and distributes wholly owned and licensed media content, video and music programming, advertising, applications and interactive games to the airline, maritime and other “away from home” non-theatrical markets.

•Connectivity: provides customers, including their passengers, crew, remote workers and soldiers, as applicable, with (i) Wi-Fi connectivity via C, Ka and Ku-band satellite and terrestrial wireless transmissions that enable access to the Internet, live television, on-demand content, shopping and travel-related information and (ii) operational solutions that allow customers to improve the management of their internal operations and passenger service delivery.

Our Chief Executive Officer, the Company’s CODM, evaluates financial performance and allocates resources by reviewing revenue, costs of sales and contribution profit separately for our two segments. Total segment gross margin provides the CODM a measure to analyze operating performance of each of the Company’s operating segments and its enterprise value against historical data and competitors’ data. However, historical results may not be indicative of future results because operating performance is highly contingent on many factors, including customer tastes and preferences. All other financial information is reviewed by the CODM on a consolidated basis.

The following table summarizes revenue and gross margin by our reportable segments for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Revenue:
Media & Content -- Licensing and Services	$	20,757	$	74,013	$	89,142	$	154,023
Connectivity -- Services	56,700		71,116		123,960		141,584
Connectivity -- Equipment	5,584		12,338		14,104		28,479
Total revenue	$	83,041	$	157,467	$	227,206	$	324,086
Cost of sales:
Media & Content -- Licensing and Services	$	21,929	$	57,604	$	77,485	$	115,273
Connectivity -- Services	45,843		58,704		103,571		124,304
Connectivity -- Equipment	4,107		7,909		11,630		18,834
Total cost of sales	$	71,879	$	124,217	$	192,686	$	258,411
Gross Margin:
Media & Content	$	(1,172)	$	16,409	$	11,657	$	38,750
Connectivity	12,334		16,841		22,863		26,925
Total Gross Margin	11,162		33,250		34,520		65,675
Other operating expenses	42,629		48,476		112,780		99,991
Loss from operations	$	(31,467)	$	(15,226)	$	(78,260)	$	(34,316)

The Company’s total assets by segment were as follows (in thousands):

	June 30, 2020		December 31, 2019
Media & Content	$	259,598	$	316,340
Connectivity	286,844		331,368
Total segment assets	546,442		647,708
Corporate assets	21,539		20,872
Total assets	$	567,981	$	668,580