Segment Reporting and Geographic Information | Segment Reporting and Geographic Information MRV operates its business in two segments: the Network Equipment segment and the Network Integration segment. The Network Equipment segment designs, manufactures, distributes and services optical networking solutions and Internet infrastructure products. The Network Integration segment distributes network solutions and Internet infrastructure products and provides value-added integration and support services for customers' networks. The accounting policies of the segments are the same as those described in the summary of significant accounting polices disclosed in MRV's 2014 Form 10-K. Management evaluates segment performance based on revenues, gross profit and operating income (loss) of each segment. As such, there are no separately identifiable Statements of Operations data below operating income (loss). The following table summarizes revenues by segment, including intersegment revenues (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Network Equipment $ 24,536 $ 21,833 $ 46,813 $ 44,152 Network Integration 18,195 21,355 34,783 41,408 Total before intersegment adjustments 42,731 43,188 81,596 85,560 Intersegment adjustments (17 ) (64 ) (109 ) (118 ) Total $ 42,714 $ 43,124 $ 81,487 $ 85,442 Network Equipment revenue primarily consists of optical communication systems that include metro ethernet equipment, optical transport equipment, lab automation equipment, out-of-band network equipment, and the related service revenue and components sold as part of system solutions. Network Integration revenue primarily consists of value-added integration and support service revenue, related third-party product sales (including third-party product sales through distribution) and components sold as part of system solutions. Substantially all Network Integration's sales are within Italy. One customer accounted for $16.9 million and $23.6 million of revenue in the Network Integration segment, or 21% and 28% of total revenue, for the six months ended June 30, 2015 , and 2014 , respectively. The same customer accounted for $8.7 million and $12.6 million of revenue in the Network Integration segment, or 20% and 29% of total revenue for the three months ended June 30, 2015 and 2014, respectively. The same customer accounted for 9% and 5% of total accounts receivable before allowance for doubtful accounts as of June 30, 2015 , and December 31, 2014 , respectively. Another customer accounted for $11.8 million and $14.2 million of revenue in the Network Integration segment, or 14% and 17% of total revenue, for the six months ended June 30, 2015 , and 2014 , respectively. The same customer accounted for $7.1 million and $7.7 million of revenue in the Network Integration segment, or 17% and 18% of total revenue for the three months ended June 30, 2015 and 2014, respectively. The same customer accounted for 27% and 29% of total accounts receivable before allowance for doubtful accounts as of June 30, 2015 , and December 31, 2014 , respectively. The following table summarizes external revenue by geographic region (in thousands): Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 United States $ 13,613 $ 13,555 $ 23,865 $ 26,411 Americas (Excluding the U.S.) 1,857 126 4,620 682 Europe 23,494 26,522 44,310 53,101 Asia Pacific 3,750 2,921 8,692 5,248 Total $ 42,714 $ 43,124 $ 81,487 $ 85,442 Revenue from external customers attributed to Italy totaled $18.2 million and $21.4 million for the three months ended June 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Italy totaled $35.4 million and $41.8 million for the six months ended June 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Australia totaled $3.2 million and $2.4 million for the three months ended June 30, 2015 and 2014 , respectively. Revenue from external customers attributed to Australia totaled $7.7 million and $4.0 million for the six months ended June 30, 2015 and 2014 , respectively. The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): June 30, 2015 December 31, 2014 Americas $ 2,815 $ 3,078 Europe 1,767 1,786 Asia Pacific 23 26 Total $ 4,605 $ 4,890 The following table provides selected Statement of Operations information by business segment (in thousands): Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Gross profit Network Equipment $ 11,959 $ 11,185 $ 23,503 $ 21,944 Network Integration 3,133 3,598 5,464 6,088 Total before intersegment adjustments 15,092 14,783 28,967 28,032 Corporate unallocated and intersegment adjustments (1) — (1 ) 1 1 Total $ 15,092 $ 14,782 $ 28,968 $ 28,033 Depreciation and amortization expense Network Equipment $ 516 $ 433 $ 987 $ 969 Network Integration 31 51 61 100 Corporate 29 20 58 59 Total $ 576 $ 504 $ 1,106 $ 1,128 Operating income (loss) Network Equipment $ 520 $ (1,503 ) $ 322 $ (4,343 ) Network Integration 1,533 1,704 2,038 2,550 Total before intersegment adjustments 2,053 201 2,360 (1,793 ) Corporate unallocated operating loss and adjustments (1) (1,250 ) (1,327 ) (2,368 ) (3,182 ) Total $ 803 $ (1,126 ) $ (8 ) $ (4,975 ) (1) Adjustments reflect the elimination of intersegment revenue and profit in inventory. The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands): Six months ended June 30, 2015 2014 Additions (write-offs) of property and equipment Network Equipment $ 713 $ 1,019 Network Integration 62 74 Corporate (6 ) 83 Total $ 769 $ 1,176 June 30, 2015 December 31, 2014 Total Assets Network Equipment $ 42,192 $ 40,664 Network Integration 49,588 56,921 Corporate and intersegment eliminations 8,272 16,987 Total $ 100,052 $ 114,572 |