Financial statements 2008

6. Segment information

6. Segment information

Primary segments

A business segment is a group of assets and operations engaged in providing products and services subject to risks and returns that are different from those of other business segments.

Operating divisions

The Group is divided operationally on a worldwide basis into three divisions, Digital Television Solutions, Public Access and Middleware & Advertising. These divisions, which are also based on internal management structures, can be described as follows:

  • The Digital TV Solutions division provides open conditional access solutions allowing digital TV and content providers to operate a wide range of high value-added pay TV services on a secure platform.
  • The Public Access division provides access control systems and ticketing services for ski lifts, car parks, stadiums, concert halls and important events as well as multifunctional cards for universities and corporations.
  • The Middleware & Advertising division provides middleware software, applications, including advanced advertising and interactive services as well as professional services for digital and interactive television.

Corporate

Income and expenses relating to Corporate include the costs of Group Headquarters and the items of income and expense which are not directly attributable to specific divisions.

Intersegment sales

Inter-segment transactions are contracted on arm's length basis.

The primary segment information for 2008 and 2007 is as follows:

  Operating divisions            
  Digital Television Solutions Public Access Middleware & Advertising Corporate Eliminations Total
In CHF'000 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Revenues                        
External sales 660 947 573 410 240 563 224 303 125 996 128 100 - -   - 1 027 506 925 813
Inter-segment sales 4 955 8 667 65 101 8 842 499 - - -13 862 -9 267 - -
                         
Total revenues 665 902 582 077 240 628 224 404 134 838 128 599 - - -13 862 -9 267 1 027 506 925 813
                         
Income statement                        
Operating income/(loss) 7 266 87 981 21 587 25 776 10 186 -7 575 -20 539 -18 527     18 500 87 655
                         
Interest expense and other finance income/(expense), net                     -35 005 -7 734
Share of result of associates   -109 10 413 2 574 - - - -     10 413 2 465
                         
Income/(loss) before tax                     -6 092 82 386
                         
Income tax expense                     -903 -14 938
                         
Net income/(loss) for the year                     -6 995 67 448
                         
Balance sheet                        
Assets                        
Segment assets 804 204 679 151 195 025 186 140 278 161 280 171 11 412 48 007     1 288 802 1 193 469
Investments in associates - - 5 563 10 700 - -   -     5 563 10 700
  804 204 679 151 200 588 196 840 278 161 280 171 11 412 48 007     1 294 365 1 204 169
Liabilities                        
Segment liabilities 204 376 130 655 129 312 81 233 35 604 40 556 356 495 326 170     725 787 578 614
                         
Other information                        
Capital expenditures 71 153 75 495 12 778 13 831 5 615 4 078 - -     89 546 93 404
Depreciation and amortization -43 668 -33 290 -7 927 -6 206 -7 093 -7 118 - -     -58 688 -46 614
Impairment losses -14 986 -2 897 - - - - - -     -14 986 -2 897

Secondary segments

A geographical segment provides products or services within a particular economic environment that is subject to risks and returns that are different from those segments operating in other economic environments.

Sales

Sales
  Digital Television Solutions Public Access Middleware & Advertising Total
In CHF'000 2008 2007 2008 2007 2008 2007 2008 2007
Europe 380 721 321 996 196 467 186 420 48 160 56 918 625 348 565 334
Americas 181 562 139 898 23 900 18 378 36 242 33 861 241 704 192 137
Asia & Oceania 95 929 109 280 19 470 19 200 30 028 31 027 145 427 159 507
Africa 2 735 2 236 726 305 11 566 6 294 15 027 8 835
                 
  660 947 573 410 240 563 224 303 125 996 128 100 1 027 506 925 813

Sales are allocated based on where the client is located.

Other geographical information

Other geographical information
In CHF'000 Europe Americas Others Total
Total assets as of December 31,        
- 2008 791 757 500 282 2 326 1 294 365
- 2007 789 049 412 635 2 485 1 204 169
         
Capital expenditures for        
- 2008 81 294 7 974 278 89 546
- 2007 87 855 5 459 90 93 404

Assets and capital expenditures are allocated based on location of the entity owning the assets.

Revenue categories

Revenue categories
In CHF'000 2008 2007
Sale of goods 635 266 546 924
Services rendered 235 024 215 985
Royalties and licenses 157 216 162 904
     
  1 027 506 925 813