Segment Information

9 Months Ended

Sep. 30, 2017

Note J: Segment Information

The Company's Chief Executive Officer and management regularly review financial information for the Company's discrete operating segments. Based on similarities in the economic characteristics, nature of products and services, production processes, type or class of customer served, method of distribution and regulatory environments, the operating segments have been aggregated for financial statement purposes and categorized into two reportable segments: Intersection and Highway.

Autoscope video is our machine-vision product line, and revenue consists of royalties (all of which are received from Econolite), as well as a portion of international product sales. Video products are normally sold in the Intersection segment. RTMS is our radar product line, and revenue consists of international and North American product sales. Radar products are normally sold in the Highway segment. All segment revenues are derived from external customers.

Operating expenses and total assets are not allocated to the segments for internal reporting purposes. Due to the changes in how we manage our business, we may reevaluate our segment definitions in the future.

The following tables set forth selected unaudited financial information for each of our reportable segments (in thousands):

	Three Months Ended September 30,
	Intersection				Highway				Total
	2017		2016		2017		2016		2017		2016

Revenue	$	2,852	$	2,452	$	772	$	930	$	3,624	$	3,382
Gross profit		2,577		2,291		445		277		3,022		2,568
Amortization of intangible assets		90		—		—		—		90		—
Intangible assets		2,569		2,842		827		—		3,396		2,842

	Nine Months Ended September 30,
	Intersection				Highway				Total
	2017		2016		2017		2016		2017		2016

Revenue	$	6,970	$	7,053	$	3,213	$	4,244	$	10,183	$	11,297
Gross profit		6,266		6,543		1,883		2,058		8,149		8,601
Amortization of intangible assets		270		—		—		—		270		—
Intangible assets		2,569		2,842		827		—		3,396		2,842