Segment and Related Information

The Company operates in two distinct reportable segments, Restaurant/Retail and Government. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. The Restaurant/Retail reporting segment offers point-of-sale ("POS"), food safety and management technology solutions to restaurants and retail, including in the fast casual, quick serve and table service restaurant categories, and specialty retail outlets. This segment also offers customer support including field service, installation, Advanced Exchange, and twenty-four-hour telephone support and depot repair. The Government reporting segment performs complex technical studies, analysis, and experiments, develops innovative solutions, and provides on-site engineering in support of advanced defense, security, and aerospace systems. This segment also provides expert on-site services for operating and maintaining U.S. Government-owned communication assets.

Information noted as “Other” primarily relates to the Company’s corporate, home office operations.

Information as to the Company’s reporting segments is set forth below, excluding discontinued operations (in thousands).



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Restaurant/Retail	$	34,827		$	47,716		$	74,347		$	99,265
Government	17,744			14,545			33,885			28,861
Total	$	52,571		$	62,261		$	108,232		$	128,126

Operating (loss) income:
Restaurant/Retail	$	(2,800	)	$	1,795		$	(3,408	)	$	4,161
Government	2,012			1,587			3,278			3,098
Other	(336		)	(628		)	(856		)	(2,264		)
	(1,124		)	2,754			(986		)	4,995
Other (expense) income, net	(384		)	54			(335		)	(194		)
Interest expense, net	(78		)	(13		)	(119		)	(45		)
(Loss) income before provision for income taxes	$	(1,586	)	$	2,795		$	(1,440	)	$	4,756

Depreciation, amortization and accretion:
Restaurant/Retail	$	1,057		$	821		$	1,965		$	1,595
Government	6			4			11			11
Other	154			129			303			246
Total	$	1,217		$	954		$	2,279		$	1,852

Capital expenditures including software costs:
Restaurant/Retail	$	1,126		$	1,256		$	2,265		$	2,331
Government	37			7			37			7
Other	1,002			1,033			1,533			3,307
Total	$	2,165		$	2,296		$	3,835		$	5,645

Revenues by country:
United States	$	48,845		$	57,621		$	101,523		$	119,188
Other Countries	3,726			4,640			6,709			8,938
Total	$	52,571		$	62,261		$	108,232		$	128,126

The following table represents identifiable assets by reporting segment, excluding discontinued operations (in thousands).



	June 30, 2018		December 31, 2017
Restaurant/Retail	$	82,813	$	74,257
Government	11,067		8,714
Other	33,335		31,653
Total	$	127,215	$	114,624

The following table represents assets by country based on the location of the assets, excluding discontinued operations (in thousands).



	June 30, 2018		December 31, 2017
United States	$	113,612	$	99,284
Other Countries	13,603		15,340
Total	$	127,215	$	114,624

The following table represents goodwill by reporting unit, excluding discontinued operations (in thousands).



	June 30, 2018		December 31, 2017
Restaurant/Retail	$	10,315	$	10,315
Government	736		736
Total	$	11,051	$	11,051

Customers comprising 10% or more of the Company’s total revenues, excluding discontinued operations, are summarized as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Restaurant/Retail segment:
McDonald’s Corporation	22	%	36	%	25	%	40	%
Yum! Brands, Inc.	12	%	14	%	12	%	13	%
Government segment:
U.S. Department of Defense	34	%	23	%	31	%	23	%
All Others	32	%	27	%	32	%	24	%
	100	%	100	%	100	%	100	%

No other customer within All Others represented more than 10% of the Company’s total revenue for the three and six months ended June 30, 2018 and 2017.