Segment Information

6 Months Ended

Jun. 30, 2018

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 June 30,
	Intersection				Highway				Total
	2018		2017		2018		2017		2018		2017

Revenue	$	2,842	$	2,214	$	1,051	$	1,261	$	3,893	$	3,475
Gross profit		2,596		1,954		596		723		3,192		2,677
Amortization of intangible assets		92		90		28		—		120		90
Intangible assets		2,293		2,635		1,063		546		3,356		3,181

	Six Months Ended June 30,
	Intersection				Highway				Total
	2018		2017		2018		2017		2018		2017

Revenue	$	5,259	$	4,118	$	1,644	$	2,441	$	6,903	$	6,559
Gross profit		4,782		3,689		973		1,438		5,755		5,127
Amortization of intangible assets		184		180		47		—		231		180
Intangible assets		2,293		2,635		1,063		546		3,356		3,181