NOTE M  SEGMENT INFORMATION Description of segments: The Company operates under three reportable segments. The Company's segment information has been prepared in accordance with ASC 280, Segment Reporting. Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the Company's chief operating decision-maker (CODM) in deciding how to allocate resources and assess performance. The Companys CODM is its Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income. The Company's operating segments are as follows: Home, Office and SmartVoice. The classification of the Companys business segments is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology. A description of the types of products provided by each business segment is as follows: Home - Wireless chipset solutions for converged communication at home. Such solutions include integrated circuits targeted for cordless phones sold in retail or supplied by telecommunication service providers, home gateway devices supplied by telecommunication service providers which integrate the DECT/CAT-iq functionality, integrated circuits addressing home automation applications, as well as fixed-mobile convergence solutions. During 2017, the Company consolidated its home gateway and home automation products into a new product line called SmartHome. In this segment, (i) revenues from cordless telephony products exceeded 10% of the Companys total revenues and amounted to 47% and 55% of the Companys total revenues for the first nine months of 2018 and 2017, respectively, and 42% and 53% of the Companys total revenues for the third quarter of 2018 and 2017, respectively, and (ii) revenues from SmartHome products amounted to 13% and 15% of the Companys total revenues for the first nine months of 2018 and 2017, respectively, and 12% and 13% of the Companys total revenues for the third quarter of 2018 and 2017, respectively. Office - Comprehensive solution for Voice-over-IP (VoIP) office products, including office solutions that offer businesses of all sizes low-cost VoIP terminals with converged voice and data applications. Revenues from the Companys VoIP products represented 33% and 27% of its total revenues for the first nine months of 2018 and 2017, respectively, and 37% and 30% of the Companys revenues for the third quarter of 2018 and 2017, respectively. No revenues derived from other products in the office segment exceeded 10% of the Companys total revenues for the first nine months of 2018 and 2017. SmartVoice - Products that provide voice activation and recognition, voice enhancement, always-on and far-end noise elimination that target mobile phones, SmartSpeakers, wearables, mobile headsets and other devices that incorporate the Companys noise suppression and voice quality enhancement HDClear technology. Revenues derived from products in the SmartVoice segment represented 7% and 3% of the Companys total revenues for the first nine months of 2018 and 2017, respectively, and 9% and 4% of the Companys total revenues for the third quarter of 2018 and 2017, respectively. No revenues derived from other products in the SmartVoice segment exceeded 10% of the Companys total consolidated revenues for both first nine months of 2018 and 2017. Segment data: The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, equity-based compensation expenses, and certain corporate governance costs. Selected operating results information for each business segment was as follows for the three months ended September 30, 2018 and 2017 (unaudited): Three months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 17,472 $ 22,787 $ 3,990 $ 4,565 Office $ 12,125 $ 10,136 $ 4,474 $ 3,117 SmartVoice $ 3,022 $ 1,354 $ (5,525 ) $ (5,157 ) Total $ 32,619 $ 34,277 $ 2,939 $ 2,525 Selected operating results information for each business segment was as follows for the nine months ended September 30, 2018 and 2017 (unaudited): Nine months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 54,311 $ 65,531 $ 11,752 $ 12,474 Office $ 30,269 $ 25,355 $ 9,737 $ 6,162 SmartVoice $ 6,801 $ 2,625 $ (16,296 ) $ (15,639 ) Total $ 91,381 $ 93,511 $ 5,193 $ 2,997 The reconciliation of segment operating results information to the Companys consolidated financial information was as follows for the three and nine months periods ended September 30, 2018: Three months Nine months Income from operations $ 2,939 $ 5,193 Unallocated corporate, general and administrative expenses (499 ) (1,595 ) Equity-based compensation expenses (1,752 ) (5,111 ) Intangible assets amortization expenses (425 ) (1,276 ) Financial income, net 492 1,291 Total consolidated income (loss) before taxes $ 755 $ (1,498 ) The reconciliation of segment operating results information to the Companys consolidated financial information was as follows for the three and nine months ended September 30, 2017: Three months Nine months Income from operations $ 2,525 $ 2,997 Unallocated corporate, general and administrative expenses (412 ) (1,267 ) Equity-based compensation expenses (1,438 ) (4,526 ) Intangible assets amortization expenses (425 ) (1,275 ) Financial income, net 382 1,216 Total consolidated income (loss) before taxes $ 632 $ (2,855 )