Segment and Geographical Information | Segment and Geographical Information The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company's segments using information about its revenues, gross profit, and income from operations. Such evaluation excludes general corporate-level costs that are not specific to either of the reportable segments and are managed separately at the corporate level. Corporate-level costs include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. The two operating segments, which are the same as the Company's two reportable segments, are as follows: Automation and Analytics The Automation and Analytics segment is organized around the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems, and related software. The Automation and Analytics products are designed to enable the Company's customers to enhance and improve the effectiveness of the medication-use process, the efficiency of the medical-surgical supply chain, overall patient care and clinical and financial outcomes of medical facilities. Through modular configuration and upgrades, the Company's systems can be tailored to specific customer needs. Medication Adherence The Medication Adherence segment includes primarily the manufacturing and selling of consumable medication blister cards, packaging equipment and ancillary products and services. These products are used to manage medication administration outside of the hospital setting and include medication adherence products, which consist of proprietary medication packaging systems and related products for use by institutional pharmacies servicing long-term care, and correctional facilities or retail pharmacies serving patients in their local communities. The following tables summarize the financial performance of the Company's reportable segments, including a reconciliation of income from segment operations to income from total operations: Three months ended June 30, 2017 June 30, 2016 Automation and Medication Total Automation and Medication Total (In thousands) Revenues $ 148,427 $ 32,458 $ 180,885 $ 148,660 $ 24,247 $ 172,907 Cost of revenues 80,716 22,194 102,910 78,366 16,524 94,890 Gross profit 67,711 10,264 77,975 70,294 7,723 78,017 Operating expenses 49,054 10,099 59,153 49,780 5,771 55,551 Income (loss) from segment operations $ 18,657 $ 165 $ 18,822 $ 20,514 $ 1,952 $ 22,466 Corporate costs 21,226 22,584 Income (loss) from operations $ (2,404 ) $ (118 ) Six months ended June 30, 2017 June 30, 2016 Automation and Analytics Medication Adherence Total Automation and Analytics Medication Adherence Total (In thousands) Revenues $ 272,598 $ 58,841 $ 331,439 $ 297,605 $ 46,306 $ 343,911 Cost of revenues 149,477 39,795 189,272 155,573 30,376 185,949 Gross profit 123,121 19,046 142,167 142,032 15,930 157,962 Operating expenses 99,801 21,295 121,096 101,985 11,382 113,367 Income (loss) from segment operations $ 23,320 $ (2,249 ) $ 21,071 $ 40,047 $ 4,548 $ 44,595 Corporate costs 40,711 42,861 Income (loss) from operations $ (19,640 ) $ 1,734 Significant customers There were no customers that accounted for more than 10% of our total revenues for the three and six months ended June 30, 2017 and 2016 . Also, there were no customers that accounted for more than 10% of our accounts receivable as of June 30, 2017 and December 31, 2016 . Geographical Information Revenues Three months ended June 30, June 30, (In thousands) United States $ 153,285 $ 145,988 Rest of world (1) 27,600 26,919 Total revenues $ 180,885 $ 172,907 Six months ended June 30, June 30, (In thousands) United States $ 285,565 $ 289,481 Rest of world (1) 45,874 54,430 Total revenues $ 331,439 $ 343,911 _________________________________________________ (1) No individual country represented more than 10% of the respective totals. Property and equipment, net June 30, December 31, (In thousands) United States $ 35,041 $ 36,497 Rest of world (1) 5,672 5,514 Total property and equipment, net $ 40,713 $ 42,011 _________________________________________________ (1) No individual country represented more than 10% of the respective totals. Property and equipment, net is attributed to the geographic location in which it is located. |