Segment and Geographical Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment and Geographical Information

Segment and Geographical Information

The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The two operating segments, which are the same as the Company's two reportable segments, are as follows:

Automation and Analytics

The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Automation and Analytics products are designed to enable the Company's customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, the Company's systems can be tailored to specific customer needs.

Medication Adherence

The Medication Adherence segment includes primarily the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. These products are used to manage medication administration outside of the hospital setting and include medication adherence products, which consist of proprietary medication packaging systems and related products for use by institutional pharmacies servicing long-term care, and correctional facilities or retail pharmacies serving patients in their local communities.

The following tables summarize the financial performance of the Company's reportable segments, including a reconciliation of income from segment operations to income from total operations:

	Three months ended
	June 30, 2017							June 30, 2016
	Automation and Analytics		Medication Adherence		Total			Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	148,427	$	32,458	$	180,885		$	148,660	$	24,247	$	172,907
Cost of revenues	80,716		22,194		102,910			78,366		16,524		94,890
Gross profit	67,711		10,264		77,975			70,294		7,723		78,017
Operating expenses	49,054		10,099		59,153			49,780		5,771		55,551
Income (loss) from segment operations	$	18,657	$	165	$	18,822		$	20,514	$	1,952	$	22,466
Corporate costs					21,226							22,584
Income (loss) from operations					$	(2,404	)					$	(118	)

	Six months ended
	June 30, 2017								June 30, 2016
	Automation and Analytics		Medication Adherence			Total			Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	272,598	$	58,841		$	331,439		$	297,605	$	46,306	$	343,911
Cost of revenues	149,477		39,795			189,272			155,573		30,376		185,949
Gross profit	123,121		19,046			142,167			142,032		15,930		157,962
Operating expenses	99,801		21,295			121,096			101,985		11,382		113,367
Income (loss) from segment operations	$	23,320	$	(2,249	)	$	21,071		$	40,047	$	4,548	$	44,595
Corporate costs						40,711							42,861
Income (loss) from operations						$	(19,640	)					$	1,734

Significant customers

There were no customers that accounted for more than 10% of our total revenues for the three and six months ended June 30, 2017 and 2016. Also, there were no customers that accounted for more than 10% of our accounts receivable as of June 30, 2017 and December 31, 2016.

Geographical Information

Revenues

	Three months ended
	June 30, 2017		June 30, 2016
	(In thousands)
United States	$	153,285	$	145,988
Rest of world (1)	27,600		26,919
Total revenues	$	180,885	$	172,907

	Six months ended
	June 30, 2017		June 30, 2016
	(In thousands)
United States	$	285,565	$	289,481
Rest of world (1)	45,874		54,430
Total revenues	$	331,439	$	343,911

_________________________________________________

⁽¹⁾    No individual country represented more than 10% of the respective totals.

      Property and equipment, net

	June 30, 2017		December 31, 2016
	(In thousands)
United States	$	35,041	$	36,497
Rest of world (1)	5,672		5,514
Total property and equipment, net	$	40,713	$	42,011

_________________________________________________

⁽¹⁾    No individual country represented more than 10% of the respective totals.

Property and equipment, net is attributed to the geographic location in which it is located.