Segment and Geographical Information

3 Months Ended

Mar. 31, 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 table summarizes 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
	March 31, 2017								March 31, 2016
	Automation and Analytics		Medication Adherence			Total			Automation and Analytics		Medication Adherence		Total
	(In thousands)
Revenues	$	124,171	$	26,383		$	150,554		$	148,945	$	22,059	$	171,004
Cost of revenues	68,761		17,601			86,362			77,207		13,852		91,059
Gross profit	55,410		8,782			64,192			71,738		8,207		79,945
Operating expenses	50,747		11,196			61,943			52,205		5,611		57,816
Income (loss) from segment operations	$	4,663	$	(2,414	)	$	2,249		$	19,533	$	2,596	$	22,129
Corporate costs						19,485							20,277
Income (loss) from operations						$	(17,236	)					$	1,852

Significant customers

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

Geographical Information

Revenues

	Three months ended
	March 31, 2017		March 31, 2016
	(In thousands)
United States	$	132,280	$	143,493
Rest of world (1)	18,274		27,511
Total revenues	$	150,554	$	171,004

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

      Property and equipment, net

	March 31, 2017		December 31, 2016
	(In thousands)
United States	$	35,471	$	36,497
Rest of world (1)	5,525		5,514
Total property and equipment, net	$	40,996	$	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.