| Segment Information |
Segment Information
The Company reports its operations through two operating segments—Media & Content and Connectivity. The CODM evaluates financial performance and allocates resources by reviewing revenue, costs of sales and contribution profit separately for the Company’s 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, although historical results may not be indicative of future results, as 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.
Revenue and contribution profit by segment were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2019 |
|
2018 |
Revenue: |
|
|
|
Media & Content |
|
|
|
Licensing & Services |
$ |
311,079 |
|
|
$ |
315,409 |
|
Connectivity |
|
|
|
Services |
281,083 |
|
|
290,818 |
|
Equipment |
64,715 |
|
|
40,867 |
|
Total |
345,798 |
|
|
331,685 |
|
Total revenue |
$ |
656,877 |
|
|
$ |
647,094 |
|
Cost of sales(1):
|
|
|
|
Media & Content |
|
|
|
Licensing & Services |
$ |
234,229 |
|
|
$ |
225,318 |
|
Connectivity |
|
|
|
Services |
240,375 |
|
|
255,546 |
|
Equipment |
49,121 |
|
|
31,529 |
|
Total |
289,496 |
|
|
287,075 |
|
Total cost of sales |
$ |
523,725 |
|
|
$ |
512,393 |
|
Gross Margin: |
|
|
|
Media & Content |
$ |
76,850 |
|
|
$ |
90,091 |
|
Connectivity |
56,302 |
|
|
44,610 |
|
Total Gross Margin |
133,152 |
|
|
134,701 |
|
Other operating expenses |
197,900 |
|
|
244,784 |
|
Loss from operations |
$ |
(64,748 |
) |
|
$ |
(110,083 |
) |
|
|
(1) |
Includes depreciation expense of $0.1 million (Media & Content) and $36.9 million (Connectivity) for the year ended December 31, 2019, and $0.4 million (Media & Content) and $42.2 million (Connectivity) for the year ended December 31, 2018.
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The Company’s total assets by segment were as follows (in thousands):
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|
|
|
|
|
|
|
|
|
December 31, |
|
2019 |
|
2018 |
Segment assets: |
|
|
|
Media & Content |
$ |
316,340 |
|
|
$ |
346,280 |
|
Connectivity |
331,368 |
|
|
355,144 |
|
Total segment assets |
647,708 |
|
|
701,424 |
|
Corporate assets |
20,872 |
|
|
15,663 |
|
Total assets |
$ |
668,580 |
|
|
$ |
717,087 |
|
Geographical revenue by segment as presented below is based on the billing location of the customer. Revenue from external customers was as follows (in thousands):
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|
|
|
|
|
|
|
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|
Year Ended December 31, |
|
2019 |
|
2018 |
Media & Content: |
|
|
|
United States and Canada |
$ |
67,121 |
|
|
$ |
64,763 |
|
Europe |
50,196 |
|
|
58,855 |
|
Asia and Middle East |
164,233 |
|
|
160,009 |
|
Other |
29,529 |
|
|
31,782 |
|
Total |
$ |
311,079 |
|
|
$ |
315,409 |
|
Connectivity: |
|
|
|
United States |
$ |
231,932 |
|
|
$ |
284,498 |
|
Europe |
79,574 |
|
|
37,998 |
|
Africa, Middle East and Asia |
20,433 |
|
|
6,991 |
|
Other |
13,859 |
|
|
2,198 |
|
Total |
$ |
345,798 |
|
|
$ |
331,685 |
|
Total revenue |
$ |
656,877 |
|
|
$ |
647,094 |
|
The following table summarizes net property, plant and equipment by country (in thousands):
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December 31, |
|
2019 |
|
2018 |
Media & Content: |
|
|
|
United States and Canada |
$ |
625 |
|
|
$ |
1,093 |
|
United Kingdom |
3,194 |
|
|
3,890 |
|
India |
1,544 |
|
|
1,663 |
|
Other |
706 |
|
|
172 |
|
Total |
$ |
6,069 |
|
|
$ |
6,818 |
|
Connectivity: |
|
|
|
United States |
$ |
112,491 |
|
|
$ |
141,887 |
|
Germany |
13,717 |
|
|
16,507 |
|
Other |
3,745 |
|
|
5,405 |
|
Total |
$ |
129,953 |
|
|
$ |
163,799 |
|
Corporate |
|
|
|
United States |
$ |
9,273 |
|
|
$ |
5,960 |
|
Total |
$ |
9,273 |
|
|
$ |
5,960 |
|
Property, plant and equipment, net |
$ |
145,295 |
|
|
$ |
176,577 |
|
|