Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information
Segment Information

Our business comprises two operating segments:

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.

Connectivity: provides customers, including their passengers, crew, remote workers and soldiers, as applicable, with (i) Wi-Fi connectivity via C, Ka and Ku-band satellite and terrestrial wireless 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 and passenger service delivery.

Our Chief Executive Officer, the Company’s 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, 2020 and 2019 (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Revenue:
 
 
 
Media & Content -- Licensing and Services
$
68,385

 
$
80,010

Connectivity -- Services
67,260

 
70,468

Connectivity -- Equipment
8,520

 
16,141

Total revenue
$
144,165

 
$
166,619

Cost of sales:
 
 
 
Media & Content -- Licensing and Services
$
55,556

 
$
57,669

Connectivity -- Services
57,728

 
65,600

Connectivity -- Equipment
7,523

 
10,925

Total cost of sales
$
120,807

 
$
134,194

Gross Margin:
 
 
 
Media & Content
$
12,829

 
$
22,341

Connectivity
10,529

 
10,084

Total Gross Margin
23,358

 
32,425

Other operating expenses
70,151

 
51,515

Loss from operations
$
(46,793
)
 
$
(19,090
)


The Company’s total assets by segment were as follows (in thousands):
 
 
March 31, 2020
 
December 31, 2019
Media & Content
 
$
300,205

 
$
316,340

Connectivity
 
279,799

 
331,368

Total segment assets
 
580,004

 
647,708

Corporate assets
 
50,472

 
20,872

Total assets
 
$
630,476

 
$
668,580