Segment and Geographical Information

9 Months Ended

Sep. 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
	September 30, 2017						September 30, 2016
	Automation and Analytics		Medication Adherence		Total		Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	154,651	$	32,131	$	186,782	$	152,437	$	24,300	$	176,737
Cost of revenues	79,740		22,189		101,929		77,828		17,401		95,229
Gross profit	74,911		9,942		84,853		74,609		6,899		81,508
Operating expenses	46,849		9,901		56,750		49,123		6,137		55,260
Income (loss) from segment operations	$	28,062	$	41	$	28,103	$	25,486	$	762	$	26,248
Corporate costs					18,389						21,320
Income (loss) from operations					$	9,714					$	4,928

	Nine months ended
	September 30, 2017								September 30, 2016
	Automation and Analytics		Medication Adherence			Total			Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	427,250	$	90,971		$	518,221		$	450,043	$	70,605	$	520,648
Cost of revenues	229,218		61,983			291,201			233,401		47,777		281,178
Gross profit	198,032		28,988			227,020			216,642		22,828		239,470
Operating expenses	146,651		31,196			177,847			151,108		17,518		168,626
Income (loss) from segment operations	$	51,381	$	(2,208	)	$	49,173		$	65,534	$	5,310	$	70,844
Corporate costs						59,099							64,182
Income (loss) from operations						$	(9,926	)					$	6,662

Significant customers

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

Geographical Information

Revenues

	Three months ended
	September 30, 2017		September 30, 2016
	(In thousands)
United States	$	164,190	$	155,989
Rest of world (1)	22,592		20,748
Total revenues	$	186,782	$	176,737

	Nine months ended
	September 30, 2017		September 30, 2016
	(In thousands)
United States	$	449,755	$	445,470
Rest of world (1)	68,466		75,178
Total revenues	$	518,221	$	520,648

_________________________________________________

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

      Property and equipment, net

	September 30, 2017		December 31, 2016
	(In thousands)
United States	$	33,620	$	36,497
Rest of world (1)	6,599		5,514
Total property and equipment, net	$	40,219	$	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.