| Segment Information |
Segment Information
Our business comprises two operating segments:
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Media & Content: selects, manages, provides lab services and distributes wholly owned and licensed media content, video and music programming, advertising, applications and interactive games to the airline, maritime and other “away from home” non-theatrical markets.
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Connectivity: provides customers, including their passengers, crew, remote workers and soldiers, as applicable, with (i) Wi-Fi connectivity via L, C, Ka and Ku-band satellite transmissions that enable access to the Internet, live television, on-demand content, shopping and travel-related information and (ii) operational solutions that allow customers to improve the management of their internal operations.
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Our Chief Executive Officer, the Company’s chief operating decision-maker (“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 months ended March 31, 2019 and 2018 (in thousands):
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Three Months Ended March 31, |
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2019 |
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2018 |
Revenue: |
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Media & Content -- Licensing and Services |
$ |
80,010 |
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$ |
74,915 |
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Connectivity -- Services |
70,468 |
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71,611 |
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Connectivity -- Equipment |
16,141 |
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9,971 |
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Total revenue |
$ |
166,619 |
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$ |
156,497 |
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Cost of sales: |
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Media & Content -- Licensing and Services |
$ |
57,669 |
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$ |
54,471 |
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Connectivity -- Services |
65,600 |
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57,943 |
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Connectivity -- Equipment |
10,925 |
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6,082 |
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Total |
76,525 |
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64,025 |
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Total cost of sales |
$ |
134,194 |
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$ |
118,496 |
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Gross Margin: |
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Media & Content |
$ |
22,341 |
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$ |
20,444 |
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Connectivity |
10,084 |
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17,557 |
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Total Gross Margin |
32,425 |
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38,001 |
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Other operating expenses |
51,515 |
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67,560 |
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Loss from operations |
$ |
(19,090 |
) |
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$ |
(29,559 |
) |
The Company’s total assets by segment were as follows (in thousands):
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March 31, 2019 |
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December 31, 2018 |
Media & Content |
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$ |
335,828 |
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$ |
346,280 |
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Connectivity |
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370,665 |
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355,144 |
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Total segment assets |
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706,493 |
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701,424 |
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Corporate assets |
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28,363 |
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15,663 |
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Total assets |
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$ |
734,856 |
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$ |
717,087 |
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