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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
—————————
FORM 10-Q
—————————
(Mark One)
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020

or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period ____ to ____

Commission File Number: 001-36027

MIX TELEMATICS LIMITED
(Exact name of Registrant as specified in its charter)

Republic of South AfricaNot Applicable
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)
750 Park of Commerce Blvd
Suite 100 Boca Raton
Florida33487
(Address of principal executive offices)(Zip Code)
1-877585-1088
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
American Depositary Shares, each representing
25 Ordinary Shares, no par value
MIXTNew York Stock Exchange
Ordinary Shares, no par valueNew York Stock Exchange (for listing purposes only)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of July 24, 2020, the registrant had 601,018,597 ordinary shares, of no par value, outstanding.



TABLE OF CONTENTS
 
Page
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (unaudited)
Condensed Consolidated Statements of Income (unaudited)
Condensed Consolidated Statements of Comprehensive Income (unaudited)
Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
Condensed Consolidated Statements of Cash Flows (unaudited)
Notes to Condensed Consolidated Financial Statements (unaudited)
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
 


2


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
March 31,
2020
June 30,
2020
ASSETS
Current assets:
Cash and cash equivalents$17,953  $24,513  
Restricted cash699757
Accounts receivables, net of allowances for doubtful accounts of $3.6 million and $4.6 million, respectively
24,10021,554
Inventory, net3,271  3,674
Prepaid expenses and other current assets7,3756,774
Total current assets53,39857,272
Property and equipment, net30,01928,317
Goodwill37,92338,825
Intangible assets, net15,00715,772
Deferred tax assets3,108  3,533
Other assets4,200  4,009
Total assets$143,655  $147,728  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt$2,367  $2,550  
Accounts payables5,251  4,299
Accrued expenses and other liabilities14,83917,860
Deferred revenue5,0774,563
Total current liabilities27,53429,272
Deferred tax liabilities11,43610,537
Long-term accrued expenses and other liabilities5,6605,312
Total liabilities44,63045,121
Commitments and contingencies
Stockholders’ equity:
MiX Telematics Limited stockholders’ equity
Preferred stock: 100 million shares authorized but not issued
    
Common stock: 600.9 million and 601.0 million no-par value shares issued and outstanding as of March 31, 2020 and June 30, 2020, respectively
66,522  66,522  
Less treasury stock at cost: 54 million shares as of March, 31, 2020 and June 30, 2020
(17,315) (17,315) 
Retained earnings67,482  68,687  
Accumulated other comprehensive loss(11,070) (8,986) 
Additional paid-in capital(6,599) (6,306) 
Total MiX Telematics Limited stockholders’ equity99,020  102,602  
Non-controlling interest5  5  
Total stockholders’ equity99,025  102,607  
Total liabilities and stockholders’ equity$143,655  $147,728  

The accompanying notes are an integral part of these condensed consolidated financial statements.
3



MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

Three Months Ended June 30,
20192020
Revenue
Subscription$31,638  $25,875  
Hardware and other4,645  1,622  
Total revenue36,283  27,497  
Cost of revenue
Subscriptions9,295  7,349  
Hardware and other2,933  1,229  
Total cost of revenue12,228  8,578  
Gross profit24,055  18,919  
Operating expenses
Sales and marketing3,581  2,746  
Administration and other14,786  13,491  
Total operating expenses18,367  16,237  
Income from operations5,688  2,682  
Other income/(expense)375  (98) 
Net interest income/(expense)73  (70) 
Income before income tax expense6,136  2,514  
Income tax expense1,140  92  
Net income4,996  2,422  
Less: Net income attributable to non-controlling interest    
Net income attributable to MiX Telematics Limited$4,996  $2,422  
Net income per ordinary share
Basic$0.01  $0.004  
Diluted$0.01  $0.004  
Net income per American Depository Share
Basic$0.22  $0.11  
Diluted$0.21  $0.11  
Ordinary shares
Weighted average562,060  547,124  
Diluted weighted average579,241  558,702  
American Depository Shares
Weighted average22,482  21,885  
Diluted weighted average23,170  22,348  


The accompanying notes are an integral part of these condensed consolidated financial statements.
4




MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

Three Months Ended June 30,
20192020
Net income$4,996  $2,422  
Other comprehensive income1,727  2,084  
Foreign currency translation adjustments, net of tax1,727  2,084  
Total comprehensive income6,723  4,506  
Less: Total comprehensive income attributable to non-controlling interest    
Total comprehensive income attributable to MiX Telematics Limited$6,723  $4,506  

The accompanying notes are an integral part of these condensed consolidated financial statements.






































5



MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)


Three Months Ended June 30, 2019
Common StockTreasury StockAccumulated Other Comprehensive Income/(Loss)Additional Paid-In CapitalRetained EarningsTotal MiX Telematics Limited Stockholders’ EquityNon-Controlling InterestTotal Stockholder’s Equity
SharesAmount
Balance as of April 1, 2019601,948$68,200  $(9,227) $2,115  $(6,902) $62,750  $116,936  $5  $116,941  
Adjustment on initial application of ASC 326, net of tax—  —  —  (22) —  (240) (262) —  (262) 
Net income—  —  —  —  —  4,996  4,996  —  4,996  
Other comprehensive income—  —  —  1,727  —  —  1,727  —  1,727  
Issuance of common stock in relation to stock options and SARs exercised524  —  —  —  —  —  —  —    
Stock-based compensation—  —  —  —  111  —  111  —  111  
Dividends of 4 South African cents (0.3 U.S. cents) per ordinary share declared
—  —  —  —  —  (1,563) (1,563) —  (1,563) 
Balance as of June 30, 2019602,472  $68,200  $(9,227) $3,820  $(6,791) $65,943  $121,945  $5  $121,950  





6


Three Months Ended June 30, 2020
Common StockTreasury StockAccumulated Other Comprehensive Income/(Loss)Additional Paid-In CapitalRetained EarningsTotal MiX Telematics Limited Stockholders’ EquityNon-Controlling InterestTotal Stockholder’s Equity
SharesAmount
Balance as of April 1, 2020600,934  $66,522  $(17,315) $(11,070) $(6,599) $67,482  $99,020  $5  $99,025  
Net income—  —  —  —  —  2,422  2,422  —  2,422  
Other comprehensive income—  —  —  2,084  —  —  2,084  —  2,084  
Issuance of common stock in relation to stock options and SARs exercised85  —  —  —  —  —  —  —    
Stock-based compensation—  —  —  —  293  —  293  —  293  
Dividends of 4 South African cents (0.2 U.S. cents) per ordinary share declared
—  —  —  —  —  (1,217) (1,217) —  (1,217) 
Balance as of June 30, 2020601,019  $66,522  $(17,315) $(8,986) $(6,306) $68,687  $102,602  $5  $102,607  

The accompanying notes are an integral part of these condensed consolidated financial statements.
7



MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended June 30,
20192020
Cash flows from operating activities
Cash generated from operations$5,775  $9,189  
Interest received218  112  
Interest paid(59) (83) 
Income tax (paid)/received(203) 139  
Net cash provided by operating activities5,731  9,357  
Cash flows from investing activities
Acquisition of property and equipment - in-vehicle devices(3,605) (992) 
Acquisition of property and equipment - other(231) (84) 
Proceeds from the sale of property and equipment29    
Acquisition of intangible assets(1,340) (1,044) 
Net cash used in investing activities (5,147) (2,120) 
Cash flows from financing activities
Cash paid on dividends to MiX Telematics stockholders(1,554) (1,216) 
Movement in short-term debt(596) 147  
Net cash used in financing activities(2,150) (1,069) 
Net (decrease)/increase in cash and cash equivalents, and restricted cash(1,566) 6,168  
Cash and cash equivalents, and restricted cash at beginning of the period27,838  18,652  
Effect of exchange rate changes on cash and cash equivalents, and restricted cash376  450  
Cash and cash equivalents, and restricted cash at end of the period$26,648  $25,270  

The accompanying notes are an integral part of these condensed consolidated financial statements.



8


MIX TELEMATICS LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Summary of Significant Accounting Policies

Nature of the Business

MiX Telematics Limited (the "Company") is a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service ("SaaS"). The Company’s solutions provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency, risk and security.

The Company is incorporated and domiciled in South Africa, with principal executives offices in Boca Raton, Florida.

Basis of preparation and consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, which are necessary for a fair statement of the results of the interim periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended March 31, 2020 filed with the SEC on July 23, 2020.

Use of estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported and disclosed. Significant estimates include, but are not limited to, allowances for doubtful accounts, the assessment of expected cash flows used in evaluating goodwill and long-lived assets for impairment, the amortization period for deferred commissions, the determination of useful lives of the Company’s customer relationships, contingencies, the classification of devices and other hardware as in-vehicle devices (equipment) versus inventory based on the future expectation of the different types of customer contracts, income and deferred taxes, unrecognized tax benefits and valuation allowances on deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.

As of June 30, 2020, the global outbreak of COVID-19 has had and, we believe, will continue to have an adverse impact on global economies and financial markets. We have taken into account the impact of COVID-19, to the extent possible, on our financial statements. However, future changes in economic conditions related to COVID-19 could have an impact on future estimates and judgements used, particularly those relating to goodwill sensitivities and impairment assessments.

Summary of significant accounting policies

There have been no changes to the Company’s significant accounting policies disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2020, filed with the SEC on July 23, 2020, that have had a material impact on the Company’s Condensed Consolidated Financial Statements and related notes.

2. Revenue from contracts with customers

The Company provides fleet and mobile asset management solutions. The principal revenue streams are (1) Subscription and (2) Hardware and other. Subscription revenue is recognized over time and hardware and other revenue is recognized at a point-in-time.

To provide services to customers, a device is required which collects and transmits information collected from the vehicle or other asset. Fleet customers may also obtain other items of hardware, virtually all of which are functionally-dependent on the device. Some customers obtain control of the device and other hardware (where legal title transfers to the customer); while other customers do not (where legal title remains with the Company). A contract arises on the acceptance of a customer’s purchase order, which is typically executed in writing.




9


Contract modifications
As a result of the adverse impact that the COVID-19 pandemic has had on certain of the Company’s customers, various pricing concessions relating to subscriptions, in the form of payment holidays and discounts on monthly billings, were granted during the quarter ended June 30, 2020. These pricing concessions were accounted for as contract modifications under ASC 606 Revenue from Contracts with Customers ("ASC 606"), which had the effect of reducing the transaction prices allocated to the remaining distinct performance obligations in the contracts. Accordingly, the effect of the pricing concessions is being recognized as those remaining subscription services are provided. A contract asset of $0.5 million, representing amounts that will only be billed in future periods, has been recognized as of June 30, 2020, and is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet.

Contract liabilities
When customers are invoiced in advance for subscription services that will be provided over periods of more than one month, or pay in advance of service periods of more than one month, contract liabilities are recorded. Deferred revenue as of March 31, 2020 and June 30, 2020 was $5.1 million and $4.6 million, respectively. During the quarter ended June 30, 2019 and June 30, 2020, revenue of $1.9 million and $1.1 million, respectively, was recognized which was included in the deferred revenue balances at the beginning of each quarter.

Contract acquisition costs
Commissions payable to sales employees and external third parties which are incurred to acquire contracts are capitalized and amortized, unless the amortization period is 12 months or less, in which instance they are expensed immediately. Deferred commissions were $3.6 million and $3.4 million as of March 31, 2020 and June 30, 2020, respectively, and are included in Other assets on the Condensed Balance Sheet.

The following is a summary of the amortization expense recognized (in thousands):

Three Months Ended June 30,
20192020
Amortization recognized during the quarter:$(811) $(692) 
Cost of revenue (external commissions)
(580) (484) 
Sales and marketing (internal commissions)
(231) (208) 

3. Credit risk related to accounts receivables

The movements in the allowance for doubtful accounts are as follows (in thousands):

Three Months Ended June 30,
20192020
Balance at April 1,$3,019  $3,602  
Bad debt provision595  855  
Write-offs, net of recoveries
(60) (8) 
Foreign currency translation differences83  132  
Balance at June 30,$3,637  $4,581  


Overview of the Company’s exposure to credit risk from customers

The maximum exposure to credit risk at the reporting date is the carrying value of each receivable and loan to external parties, net of impairment losses where relevant. Other than 15% of the gross receivable balance relating to four debtors as of June 30, 2020 (as of March 31, 2020: 15% of the gross receivable balance relating to four debtors), the Company has no significant concentration of credit risk, due to its spread of customers across various operations and geographical locations.

The Company does not hold any collateral as security.

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Net accounts receivables as of March 31, 2020 and June 30, 2020 of $2.9 million and $3.0 million, respectively, are pledged as security for the Company’s overdraft facilities.

4. Property and equipment

Property and equipment comprises owned and right of use assets. The Company leases many assets including property, vehicles, machinery and IT equipment.

The cost and accumulated depreciation of owned equipment are as follows (in thousands):


March 31,
2020
June 30,
2020
Owned equipment
Equipment, vehicles and other$6,114  $6,335  
In-vehicle devices52,824  53,440  
Less: accumulated depreciation and impairments(35,397) (37,847) 
Owned equipment, net$23,541  $21,928  

Total depreciation expense related to owned equipment during the three months ended June 30, 2019 and 2020 was $3.3 million and $2.8 million, respectively. Depreciation expense related to in-vehicle devices is included in subscription cost of revenue.

The cost and accumulated depreciation of right-of-use property and equipment are as follows (in thousands):

March 31,
2020
June 30,
2020
Right-of-use assets
Property$7,724  $7,969  
Equipment, vehicles and other250  252  
Less: accumulated depreciation(1,496) (1,832) 
Right of use property and equipment, net$6,478  $6,389  


5. Intangible assets

Intangible assets comprise the following (in thousands):

As of March 31, 2020As of June 30, 2020
Useful life (in years)Gross Carrying amountAccumulated amortizationNetGross Carrying amountAccumulated amortizationNet
Patents and trademarks
3 - 20
$76  $(45) $31  $50  $(20) $30  
Customer relationships
2 - 15
2,600  (2,068) 532  2,566  (2,070) 496  
Internal-use software, technology and other
1 - 18
26,508  (12,064) 14,444  28,440  (13,194) 15,246  
Total$29,184  $(14,177) $15,007  $31,056  $(15,284) $15,772  


For the three months ended June 30, 2019 and 2020, amortization expense of $1.0 million, and $0.8 million has been recognized, respectively.
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6. Accrued expenses and other liabilities

Accrued expenses comprise the following (in thousands):

March 31,
2020
June 30,
2020
Current:
Product warranties $601  $622  
Maintenance357  454  
Employee-related accruals5,296  6,665  
Lease liabilities1,094  1,404  
Accrued income tax payable736  2,216  
Other accruals6,755  6,499  
Total current$14,839  $17,860  
Non-current:
Lease liabilities$5,413  $5,092  
Other liabilities247  220  
Total non-current$5,660  $5,312  

Product warranties
The Company provides warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily. Management estimates the related provision for future warranty claims based on historical warranty claim information, the product lifetime, as well as recent trends that might suggest that past cost information may differ from future claims. The table below provides details of the movement in the accrual in thousands:

Three Months Ended June 30,
20192020
Product warranties
Balance at April 1,$777  $616  
Statement of Income charge60  26  
Utilized(117) (31) 
Foreign currency translation difference13  22  
Balance at June 30,$733  $633  
Non-current portion (included in other liabilities)$15  $11  
Current portion$718  $622  

7. Income taxes

Our income tax provision for the three months ended June 30, 2019 and 2020 reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The estimates are re-evaluated each quarter based on our estimated tax expense for the full fiscal year.

Our effective tax rate was 18.6% for the three months ended June 30, 2019 compared to 3.7% for the three months ended June 30, 2020. Ignoring the impact of foreign exchange gains and losses net of tax, the effective tax rate for the three months ended June 30, 2019 and 2020, was 27.4% and 30.2%, respectively.
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The Company files income tax returns in South Africa, the US federal jurisdiction, many US states, as well as many foreign jurisdictions. The tax year 2020 remain open to examination by the various jurisdictions in which the Company is subject to tax. Fiscal years outside the normal statutes of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. Our federal, and state, income tax returns have been examined or are closed by statute for all years prior to fiscal year 2020.

Tax authorities for certain non-U.S. jurisdictions are also examining returns. With some exceptions, we are generally not subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2020.

8. Earnings per share

Basic
Basic earnings per share is calculated by dividing the income attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the period.

The net income and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows (in thousands, except per share data):

Three Months Ended June 30,
20192020
Numerator (basic)
Net income attributable to ordinary shareholders$4,996  $2,422  
Denominator (basic)
Weighted-average number of ordinary shares in issue562,060  547,124  
Basic earnings per share $0.01  $0.004  
American Depository Shares*:
Net income attributable to ordinary shareholders$4,996  $2,422  
Weighted-average number of American Depository Shares in issue22,482  21,885  
Basic earnings per American Depository share$0.22  $0.11  
*One American Depository Share is the equivalent of 25 ordinary shares.


Diluted
Diluted earnings per share is calculated by dividing the diluted income attributable to ordinary shareholders by the diluted weighted average number of ordinary shares in issue during the period. Stock options, stock appreciation rights, performance shares and restricted share units granted to employees under the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan ("LTIP") are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required performance condition (if applicable) would have been met based on the performance up to the reporting date, and to the extent to which they are dilutive.



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Three months ended June 30,
20192020
Numerator (diluted)
Diluted net income attributable to ordinary shareholders$4,996  $2,422  
Denominator (diluted)
Weighted-average number of ordinary shares in issue562,060  547,124  
Adjusted for:
– potentially dilutive effect of stock appreciation rights15,234  9,696  
– potentially dilutive effect of stock options and restricted share units1,947  1,882  
Diluted-weighted average number of ordinary shares in issue579,241  558,702  
Diluted earnings per share$0.01  $0.004  
American Depository Shares*:
Diluted net income attributable to ordinary shareholders$4,996  $2,422  
Diluted weighted-average number of American Depository Shares in issue23,170  22,348  
Diluted earnings per American Depository share$0.21  $0.11  
*One American Depository Share is the equivalent of 25 ordinary shares.

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9. Segment information

The Company has 6 reportable segments, which are based on the geographical location of the 5 Regional Sales Offices ("RSOs") and also includes the Central Services Organization ("CSO"). CSO is the central services organization that wholesales products and services to RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of hardware and software platforms and provides common marketing, product management, technical and distribution support to each of the other reportable segments. CSO is a reportable segment because it produces discrete financial information which is reviewed by the chief operating decision maker ("CODM") and has the ability to generate external revenues.

The CODM has been identified collectively as the executive committee and the Chief Executive Officer who make strategic decisions. The performance of the reportable segments have been measured and evaluated by the CODM using Segment Adjusted EBITDA, which is a measure which uses net income, determined under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, as a starting point.

Segment assets are not disclosed because such information is not reviewed by the CODM.

The following table provides revenue and Segment Adjusted EBITDA (in thousands):

Three Months Ended June 30, 2019
Subscription
revenue (1)
Hardware
and other
revenue (2)
Total revenueSegment Adjusted EBITDA
Regional Sales Offices
Africa$17,686  $1,381  $19,067  $8,357  
Europe2,787  557  3,344  1,071  
Americas5,662  886  6,548  2,358  
Middle East and Australasia4,261  1,623  5,884  2,754  
Brazil1,217  161  1,378  623  
Total Regional Sales Offices31,613  4,608  36,221  15,163  
Central Services Organization25  37  62  (2,645) 
Total Segment Results$31,638  $4,645  $36,283  $12,518  

1.Subscription revenue is recognized over time.
2.Hardware and other revenue is recognized at a point in time.

Three Months Ended June 30, 2020
Subscription
revenue (1)
Hardware
and other
revenue (2)
Total revenueSegment Adjusted EBITDA
Regional Sales Offices
Africa$13,923  $601  $14,524  $7,245  
Europe2,850  134  2,984  1,302  
Americas4,175  155  4,330  1,408  
Middle East and Australasia3,881  709  4,590  1,918  
Brazil1,031  23  1,054  410  
Total Regional Sales Offices25,860  1,622