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

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

9 Months Ended

Sep. 30, 2018

As of September 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 nine months ended September 30, 2018 and 2017 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenue:
Media & Content
Licensing and services	$	80,649		$	71,348		$	239,020		$	222,294
Connectivity
Services	76,955			72,262			221,540			211,106
Equipment	6,423			7,927			25,927			26,471
Total	83,378			80,189			247,467			237,577
Total revenue	$	164,027		$	151,537		$	486,487		$	459,871
Cost of sales:
Media & Content
Licensing and services	$	56,704		$	52,926		$	169,615		$	163,876
Connectivity
Services	66,422			52,904			187,908			153,748
Equipment	5,443			7,121			15,859			23,956
Total	71,865			60,025			203,767			177,704
Total cost of sales	$	128,569		$	112,951		$	373,382		$	341,580
Gross Margin:
Media & Content	$	23,945		$	18,422		$	69,405		$	58,418
Connectivity	11,513			20,164			43,700			59,873
Total Gross Margin	35,458			38,586			113,105			118,291
Other operating expenses	57,024			71,080			185,652			278,303
Loss from operations	$	(21,566	)	$	(32,494	)	$	(72,547	)	$	(160,012	)

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



	September 30, 2018		December 31, 2017
Media & Content	$	336,913	$	362,216
Connectivity	443,224		479,714
Total segment assets	780,137		841,930
Corporate assets	14,010		18,654
Total assets	$	794,147	$	860,584