NOTE

17:

SEGMENT INFORMATION

Description of segments:

The Company operates under

three

reportable segments.

The Company’s segment information has been prepared in accordance with ASC

280,

“Segment Reporting.” Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision-maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer, who evaluates the Company’s performance and allocates resources based on segment revenues and operating income.

Our operating segments are as follows: Home, Unified Communications and SmartVoice. The classification of the Company’s business segments is based on a number of factors that our management uses to evaluate, view and run the Company’s business operations, which include, but are

not

limited to, customer base, homogeneity of products and technology.

A description of the types of products provided by each business segment is as follows:

Home - Wireless chipset solutions for converged communication at home. Such solutions include integrated circuits targeted for cordless phones sold in retail or supplied by telecommunication service providers, home gateway devices supplied by telecommunication service providers which integrate the DECT/CAT-iq functionality, integrated circuits addressing home automation applications, as well as fixed-mobile convergence solutions. During

2017,

the Company consolidated its home gateway and home automation products into a new product line called SmartHome. In this segment, (i) revenues from cordless telephony products amounted to

37%,

45%

and

54%

of the Company’s total revenues for

2019,

2018

and

2017,

respectively, and (ii) revenues from the Company’s SmartHome products amounted to

14%,

12%

and

14%

of our total revenues for

2019,

2018

and

2017,

respectively.

Unified Communications - Comprehensive solution for Unified Communications products, including office solutions that offer businesses of all sizes VoIP terminals with converged voice and data applications. Revenues from the Company’s Unified Communications products represented

32%,

33%

and

28%

of the Company’s total revenues for

2019,

2018

and

2017,

respectively.

revenues derived from other products in the office segment exceeded

10%

of the Company’s total consolidated revenues for the years

2019,

2018

and

2017.

SmartVoice - Products for the SmartVoice market that provide voice activation and recognition, voice enhancement, always-on and far-end noise elimination that target mobile phones, mobile hearables and headsets and other devices that incorporate the Company’s noise suppression and voice quality enhancement HDClear technology. Revenues derived from products in the SmartVoice segment represented

16%

of the Company’s total revenues for

2019

but did

not

exceed

10%

of the Company’s total revenues for

2018

2017.

individual product in the SmartVoice segment exceeded

10%

of the Company’s total revenues for the years

2019,

2018

and

2017.

Segment data:

The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those we use for consolidation of our financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does

not

allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, equity-based compensation expenses, and certain corporate governance costs.

The Company does

not

allocate any assets to segments and, therefore,

amount of assets is reported to management and disclosed in the financial information for segments. Selected operating results information for each business segment was as follows for the years ended

December

31,

2019,

2018

and

2017:

	Year ended December 31
	Revenues						Income (loss) from operations
	201 9		2018		2017		201 9			2018			2017
Home	$	60,153	$	67,741	$	85,021	$	16,821		$	14,206		$	16,256

Unified Communications	$	38,123	$	38,817	$	34,879	$	12,555		$	12,147		$	9,105

SmartVoice	$	19,337	$	10,880	$	4,853	$	(23,657	)	$	(21,476	)	$	(20,798	)

Total	$	117,613	$	117,438	$	124,753	$	5,719		$	4,877		$	4,563

The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows:

	Year ended December 31,
	201 9			201 8			201 7
Income from operations	$	5,719		$	4,877		$	4,563
Unallocated corporate, general and administrative expenses*		(2,075	)		(2,013	)		(1,766	)
Equity-based compensation expenses		(7,631	)		(6,804	)		(5,861	)
Intangible assets amortization expenses		(417	)		(1,700	)		(1,700	)
Financial income, net		1,654			1,815			1,669
Total consolidated income (loss) before taxes	$	(2,750	)	$	(3,825	)	$	(3,095	)

*Includes mainly legal, accounting, board of directors and investors relation expenses.

Major customers and geographic information

The following table shows the breakdown of revenues for all product lines for the periods indicated by geographic location based on the geographic location of the Company’s customers (in thousands):

	Year ended December 31,
	201 9		2018		2017
United States	$	4,947	$	5,876	$	4,927
Hong Kong		31,692		36,666		46,119
Japan		11,249		14,284		16,567
Europe		9,546		9,022		9,882
China		22,813		16,107		16,096
Taiwan		26,634		23,940		22,442
Korea		7,285		7,341		4,190
Other		3,447		4,202		4,530
Total revenues	$	117,613	$	117,438	$	124,753

For a summary of revenues from major customers, please see Note

The following is a summary of long-lived assets (property and equipment and operating leases) within geographic areas based on the assets’ locations:

	December 31,
	201 9		2018
Long-lived assets

Europe	$	192	$	146
Israel		15,423		1,786
Other		2,845		816

	$	18,460	$	2,748