Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Revenue:
Media & Content -- Licensing and Services $ 20,757    $ 74,013    $ 89,142    $ 154,023   
Connectivity -- Services 56,700    71,116    123,960    141,584   
Connectivity -- Equipment 5,584    12,338    14,104    28,479   
Total revenue $ 83,041    $ 157,467    $ 227,206    $ 324,086   
Cost of sales:
Media & Content -- Licensing and Services $ 21,929    $ 57,604    $ 77,485    $ 115,273   
Connectivity -- Services 45,843    58,704    103,571    124,304   
Connectivity -- Equipment 4,107    7,909    11,630    18,834   
Total cost of sales $ 71,879    $ 124,217    $ 192,686    $ 258,411   
Gross Margin:
Media & Content $ (1,172)   $ 16,409    $ 11,657    $ 38,750   
Connectivity 12,334    16,841    22,863    26,925   
Total Gross Margin 11,162    33,250    34,520    65,675   
Other operating expenses 42,629    48,476    112,780    99,991   
Loss from operations $ (31,467)   $ (15,226)   $ (78,260)   $ (34,316)  

The Company’s total assets by segment were as follows (in thousands):
June 30, 2020 December 31, 2019
Media & Content $ 259,598    $ 316,340   
Connectivity 286,844    331,368   
Total segment assets 546,442    647,708   
Corporate assets 21,539    20,872   
Total assets $ 567,981    $ 668,580