Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

6 Months Ended

Jun. 30, 2018

As of June 30, 2018, the Company’s business was comprised of two operating segments: Media & Content and Connectivity. Our CODM evaluates financial performance and allocates resources by reviewing revenue, costs of sales and contribution profit separately for our two segments. Total segment gross margin provides the CODM a measure to analyze operating performance of each of the Company’s operating segments and its enterprise value against historical data and competitors’ data. However, historical results may not be indicative of future results because operating performance is highly contingent on many factors, including customer tastes and preferences. All other financial information is reviewed by the CODM on a consolidated basis.

The following table summarizes revenue and gross margin by our reportable segments for the three and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue:
Media & Content
Licensing and services	$	83,455		$	74,566		$	158,369		$	150,945
Connectivity
Services	72,973			71,582			144,585			138,845
Equipment	9,534			9,594			19,505			18,544
Total	82,507			81,176			164,090			157,389
Total revenue	$	165,962		$	155,742		$	322,459		$	308,334
Cost of sales:
Media & Content
Licensing and services	$	58,456		$	56,693		$	112,910		$	110,949
Connectivity
Services	63,848			52,230			121,885			100,846
Equipment	4,427			9,167			10,415			16,835
Total	68,275			61,397			132,300			117,681
Total cost of sales	$	126,731		$	118,090		$	245,210		$	228,630
Gross Margin:
Media & Content	$	24,999		$	17,873		$	45,459		$	39,996
Connectivity	14,232			19,779			31,790			39,708
Total Gross Margin	39,231			37,652			77,249			79,704
Other operating expenses	60,764			63,760			128,228			207,225
Loss from operations	$	(21,533	)	$	(26,108	)	$	(50,979	)	$	(127,521	)

The Company’s total assets by segment were as follows (in thousands):



	June 30, 2018		December 31, 2017
Media & Content	$	351,462	$	362,216
Connectivity	456,507		479,714
Total segment assets	807,969		841,930
Corporate assets	16,508		18,654
Total assets	$	824,477	$	860,584