F-29
Our two reporting segments are the Government Segment and the Commercial Segment.
Government Segment:
We provide professional services including field support of deployable wireless systems and
cybersecurity training to the U.S. Department of Defense and other government and foreign customers. We own and operate secure
satellite teleport facilities, resell access to satellite airtime (known as space segment), and design, furnish, install and operate wireless
communication systems and components, including our SwiftLink
®
deployable communication systems which integrate high speed,
satellite, and, internet protocol technology with secure, federal government-approved cryptologic devices.
Commercial Segment:
We are one of two leading companies that enable 9-1-1 call routing via cellular, Voice over Internet
Protocol, and next generation technology. Other TCS hosted and managed services include cellular carrier infrastructure for text
messaging and location-based platforms and applications, including turn-by-turn navigation. Commercial segment customers include
wireless carrier network operators, Voice over Internet Protocol service providers, wireless device manufacturers, automotive industry
suppliers, and state and local governments.
Management evaluates segment performance based on gross profit and all revenues reported below are from external customers.
We do not maintain information regarding segment assets. Accordingly, asset information by reportable segment is not presented.
The following tables set forth the results of our reportable segments and a reconciliation of segment gross profit to net income
(loss) for the years ended December 31:
2013
2012
2011
Gvmt
Comm
Total
Gvmt
Comm
Total
Gvmt
Comm
Total
Revenue
Services ............. $131,078 $150,311 $281,389 $146,064 $159,054 $305,118 $129,213 $174,708 $303,921
Systems ............. 61,153 19,749 80,902 158,576 23,690 182,266 105,023 16,468 121,491
Total
revenue 192,231 170,060 362,291 304,640 182,744 487,384 234,236 191,176 425,412
Direct costs of revenue
Direct cost of
services ......... 92,301 63,984 156,285 107,879 70,438 178,317 89,926 81,051 170,977
Direct cost of
systems ......... 50,445 16,593 67,038 133,638 15,222 148,860 89,957 13,241 103,198
Total Direct
costs of
revenue 142,746 80,577 223,323 241,517 85,660 327,177 179,883 94,292 274,175
Gross profit
Services gross
profit ............. 38,777 86,327 125,104 38,185 88,616 126,801 39,287 93,657 132,944
Systems gross
profit ............. 10,708 3,156 13,864 24,938 8,468 33,406 15,066 3,227 18,293
Total gross
profit.... $ 49,485 $ 89,483 $138,968 $ 63,123 $ 97,084 $160,207 $ 54,353 $ 96,884 $151,237
2013
2012
2011
Total segment gross profit
............................................................... $ 138,968 $ 160,207 $ 151,237
Research and development expense ......................................... (34,308) (36,602) (37,098)
Sales and marketing expense.................................................... (28,495) (30,753) (29,394)
General and administrative expense ......................................... (54,689) (54,277) (46,218)
Depreciation and amortization of property and equipment ...... (14,853) (14,245) (12,135)
Amortization of acquired intangible assets ..............................
(4,570)
(4,374)
(5,535)
Impairment of goodwill and long-lived assets.......................... (31,977) (125,703)
—
Interest expense ........................................................................
(8,262)
(7,383)
(7,283)
Amortization of deferred financing fees...................................
(3,403)
(757)
(798)
Gain (loss) on early retirement of debt.....................................
(178)
431
—
Benefit (provision) for income taxes ........................................ (16,591)
15,491
(5,412)
Other income (expense), net.....................................................
(239)
(23)
(360)
Net income (loss)
.............................................................................. $ (58,597) $ (97,988) $
7,004
