8x8 2004 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2004 8x8 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 69

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69

60
geographic areas and major customers. Under SFAS No. 131, the method for determining what information to report
is based upon the way management organizes the operating segments within the Company for making operating
decisions and assessing financial performance. In the fourth quarter of fiscal 2001, management began evaluating
the Company's results based on three reportable segments: Packet8 (formerly known as Corporate and Other),
Netergy, which consisted of the semiconductor business, and Centile, which consisted of the hosted iPBX business.
During the third quarter of fiscal 2004, the Company changed its internal reporting processes and determined that it
had only one reportable segment, and ceased preparing operational data on the former segment basis. The change in
internal reporting processes is consistent with the change in business focus as the Company is primarily focusing its
efforts on its Packet8 broadband communications service.
The following table presents net revenues by groupings of similar products (in thousands).
Year Ende d Mar c h 3 1 ,
2004 2003 2002
Semiconductors and related software..............................
.
$ 7,730 $ 9,719 $ 13,350
Hosted iPBX Solutions.......................................................
.
272 861 260
Packet8, videophones/equipment and other...................
.
1,306 423 1,081
Total revenues.............................................................
.
$ 9,308 $ 11,003 $ 14,691
The following table illustrates net revenues by geographic area. Revenues are attributed to countries based on the
destination of shipment (in thousands):
Year Ende d Mar c h 3 1 ,
2004 2003 2002
United States..........................................................................
.
$2,728$4,218$5,777
Europe.....................................................................................
.
1,309 2,657 4,126
Taiwan.....................................................................................
.
4,163 1,569 2,026
Japan........................................................................................ 568 919 1,119
Other........................................................................................
.
540 1,640 1,643
$ 9,308 $ 11,003 $ 14,691
The majority of the Company's long-lived assets were located in the United States. Long-lived assets consist
primarily of property and equipment and deposits. The following table illustrates long-lived assets by country (in
thousands):
March 31,
2004 2003
United States..................................................................................................
.
$154$645
France..............................................................................................................
.
4244
$158$889
Two customers represented more than 10% of our total revenues in each of fiscal 2004 and 2003. These customers
represented 26% and 16% of our total revenues in fiscal 2004 and 17% and 11% of our total revenues in fiscal 2003.
During the fiscal year ended March 31, 2002, three customers represented more than 10% of our total revenues.
These customers represented 13%, 13%, and 12% of our total revenues.